Kayne Anderson Rudnick Investment Management LLC Cuts Holdings in Paycom Software, Inc. $PAYC

Key Points

• Kayne Anderson Rudnick Investment Management LLC has reduced its holdings in Paycom Software by 7.0%, selling 17,133 shares during the first quarter, now owning approximately 0.40% of the company valued at $50.08 million.
• Multiple brokerages have adjusted their target prices for Paycom Software, with notable increases from Stifel Nicolaus ($215 to $215) and Piper Sandler ($224 to $246), reflecting a generally neutral rating consensus.
• The company reported strong quarterly earnings, with earnings per share of $2.06, exceeding estimates, and announced a quarterly dividend of $0.375 per share, indicating a 20.30% payout ratio.

Kayne Anderson Rudnick Investment Management LLC trimmed its holdings in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 7.0% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 229,217 shares of the software maker's stock after selling 17,133 shares during the quarter. Kayne Anderson Rudnick Investment Management LLC owned approximately 0.40% of Paycom Software worth $50,079,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Brooklyn Investment Group boosted its stake in Paycom Software by 19.4% in the first quarter. Brooklyn Investment Group now owns 240 shares of the software maker's stock valued at $52,000 after acquiring an additional 39 shares in the last quarter. Commerce Bank boosted its stake in Paycom Software by 2.2% in the first quarter. Commerce Bank now owns 2,351 shares of the software maker's stock valued at $514,000 after acquiring an additional 50 shares in the last quarter. Allworth Financial LP boosted its stake in Paycom Software by 12.9% in the first quarter. Allworth Financial LP now owns 464 shares of the software maker's stock valued at $105,000 after acquiring an additional 53 shares in the last quarter. US Bancorp DE boosted its stake in Paycom Software by 0.5% in the first quarter. US Bancorp DE now owns 10,421 shares of the software maker's stock valued at $2,277,000 after acquiring an additional 57 shares in the last quarter. Finally, Salvus Wealth Management LLC boosted its stake in Paycom Software by 4.9% in the first quarter. Salvus Wealth Management LLC now owns 1,238 shares of the software maker's stock valued at $270,000 after acquiring an additional 58 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have weighed in on PAYC. Stifel Nicolaus raised their target price on shares of Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research note on Thursday, May 8th. Piper Sandler lifted their price objective on shares of Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research note on Thursday, May 8th. Cantor Fitzgerald assumed coverage on shares of Paycom Software in a research note on Thursday, August 14th. They set a "neutral" rating and a $230.00 price objective for the company. JPMorgan Chase & Co. lifted their price objective on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Finally, BMO Capital Markets lifted their price objective on shares of Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday, August 7th. One investment analyst has rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $234.36.

Paycom Software Stock Performance

PAYC opened at $233.7390 on Monday. Paycom Software, Inc. has a fifty-two week low of $153.08 and a fifty-two week high of $267.76. The company has a fifty day moving average of $229.43 and a two-hundred day moving average of $228.37. The stock has a market capitalization of $13.53 billion, a price-to-earnings ratio of 31.63, a PEG ratio of 2.55 and a beta of 0.81.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.28. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The company had revenue of $483.60 million during the quarter, compared to analysts' expectations of $472.00 million. During the same quarter in the previous year, the company earned $1.62 earnings per share. The firm's revenue for the quarter was up 10.5% on a year-over-year basis. On average, equities research analysts forecast that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Shareholders of record on Monday, August 25th will be issued a $0.375 dividend. The ex-dividend date of this dividend is Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. Paycom Software's payout ratio is presently 20.30%.

Insider Buying and Selling at Paycom Software

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $249.96, for a total value of $374,940.00. Following the completion of the transaction, the insider owned 27,233 shares of the company's stock, valued at approximately $6,807,160.68. The trade was a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Chad R. Richison sold 23,200 shares of the business's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $265.20, for a total transaction of $6,152,640.00. Following the sale, the chief executive officer directly owned 3,224,049 shares of the company's stock, valued at $855,017,794.80. This represents a 0.71% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 25,590 shares of company stock valued at $6,761,837. Corporate insiders own 10.90% of the company's stock.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

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