Hsbc Holdings PLC Increases Stock Holdings in Paycom Software, Inc. $PAYC

Key Points

• HSBC Holdings PLC increased its stake in Paycom Software by 25.5% in the fourth quarter, buying an additional 19,937 shares to bring its total to 98,103 shares worth about $15.7 million.
• Paycom reported stronger-than-expected quarterly results, posting EPS of $3.15 versus analysts’ $2.99 estimate and revenue of $571.8 million, up 7.8% year over year.
• Analysts remain mixed on the stock, with a consensus rating of “Hold” and an average price target of $159.67, even as some firms raised targets and one upgraded the shares to strong buy.

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

Several other hedge funds and other institutional investors have also recently made changes to their positions in PAYC. True Wealth Design LLC boosted its holdings in shares of Paycom Software by 946.7% in the fourth quarter. True Wealth Design LLC now owns 157 shares of the software maker's stock worth $25,000 after buying an additional 142 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in Paycom Software by 190.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock valued at $25,000 after buying an additional 101 shares during the period. Clearstead Advisors LLC grew its position in Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after buying an additional 94 shares during the period. Caitlin John LLC purchased a new stake in Paycom Software during the third quarter valued at approximately $29,000. Finally, CYBER HORNET ETFs LLC purchased a new stake in Paycom Software during the second quarter valued at approximately $29,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

NYSE PAYC opened at $124.36 on Friday. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $248.95. The stock has a market cap of $5.92 billion, a price-to-earnings ratio of 14.38, a PEG ratio of 1.10 and a beta of 0.79. The company's 50 day moving average is $132.50 and its two-hundred day moving average is $136.27.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, topping analysts' consensus estimates of $2.99 by $0.16. The business had revenue of $571.80 million during the quarter, compared to analyst estimates of $564.37 million. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The company's revenue was up 7.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.80 earnings per share. As a group, research analysts anticipate that Paycom Software, Inc. will post 9.16 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were paid a dividend of $0.375 per share. The ex-dividend date was Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.2%. Paycom Software's payout ratio is 17.34%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on PAYC. BTIG Research lifted their price target on shares of Paycom Software from $140.00 to $160.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Barclays reduced their price objective on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Thursday, May 7th. BMO Capital Markets raised their target price on Paycom Software from $137.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, May 7th. UBS Group decreased their target price on Paycom Software from $210.00 to $183.00 and set a "buy" rating on the stock in a report on Tuesday, April 21st. Finally, Zacks Research upgraded Paycom Software from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $159.67.

About Paycom Software

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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