Hsbc Holdings PLC Boosts Position in Paycom Software, Inc. $PAYC

Key Points

• HSBC Holdings PLC increased its stake in Paycom Software by 25.5% in the fourth quarter, buying 19,937 additional shares and bringing its total to 98,103 shares valued at about $15.7 million.
• Institutional ownership remains very high, with hedge funds and other institutions controlling 87.77% of Paycom’s stock; several firms, including State Street, First Trust, and Invesco, also boosted their positions.
• Paycom reported better-than-expected quarterly results, posting EPS of $3.15 versus the $2.99 consensus and revenue of $571.8 million, while analysts currently have an average “Hold” rating and a $159.25 price target.

Hsbc Holdings PLC grew its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 25.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 98,103 shares of the software maker's stock after buying an additional 19,937 shares during the quarter. Hsbc Holdings PLC owned 0.18% of Paycom Software worth $15,651,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in PAYC. State Street Corp increased its holdings in Paycom Software by 0.4% during the 4th quarter. State Street Corp now owns 2,165,546 shares of the software maker's stock valued at $345,101,000 after acquiring an additional 8,419 shares in the last quarter. First Trust Advisors LP increased its stake in shares of Paycom Software by 19.9% during the 4th quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker's stock worth $265,419,000 after purchasing an additional 275,954 shares in the last quarter. Invesco Ltd. raised its position in shares of Paycom Software by 28.2% during the 4th quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker's stock worth $248,551,000 after purchasing an additional 343,494 shares during the last quarter. Federated Hermes Inc. raised its position in shares of Paycom Software by 12.7% during the 4th quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker's stock worth $99,500,000 after purchasing an additional 70,208 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in Paycom Software by 29.8% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 604,090 shares of the software maker's stock valued at $96,878,000 after buying an additional 138,795 shares in the last quarter. Institutional investors and hedge funds own 87.77% of the company's stock.

Analyst Ratings Changes

PAYC has been the topic of a number of analyst reports. Citigroup increased their target price on Paycom Software from $120.00 to $136.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Weiss Ratings reissued a "sell (d+)" rating on shares of Paycom Software in a report on Friday, May 1st. Barclays reduced their price objective on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 7th. TD Cowen dropped their price objective on Paycom Software from $154.00 to $149.00 and set a "buy" rating for the company in a research report on Friday, June 26th. Finally, Zacks Research raised shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $159.25.

Paycom Software Trading Up 2.5%

Shares of Paycom Software stock opened at $143.39 on Wednesday. Paycom Software, Inc. has a fifty-two week low of $104.90 and a fifty-two week high of $248.95. The business's fifty day moving average is $133.67 and its two-hundred day moving average is $134.60. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm has a market cap of $6.83 billion, a PE ratio of 16.58, a P/E/G ratio of 1.19 and a beta of 0.80.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, beating analysts' consensus estimates of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The business had revenue of $571.80 million during the quarter, compared to the consensus estimate of $564.37 million. During the same quarter in the previous year, the business earned $2.80 earnings per share. The business's revenue for the quarter was up 7.8% on a year-over-year basis. Analysts anticipate that Paycom Software, Inc. will post 9.32 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th were issued a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Tuesday, May 26th. Paycom Software's dividend payout ratio is presently 17.34%.

Paycom Software Company Profile

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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