Legal & General Group Plc Makes New $12.01 Million Investment in Paycom Software, Inc. $PAYC

Key Points

• Legal & General Group Plc acquired 95,536 Paycom shares worth approximately $12.01 million, while institutional investors collectively own 87.77% of the company.
• Analysts raised several price targets, including UBS to $285 and KeyCorp to $270, but the overall consensus remains a “Hold” rating with a $214.23 target price.
• Paycom exceeded quarterly expectations with $2.78 in EPS and $531.2 million in revenue, up 9.8% year over year. The company also declared a quarterly dividend of $0.375 per share, representing a 0.6% annual yield.

Legal & General Group Plc acquired a new position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 95,536 shares of the software maker's stock, valued at approximately $12,007,000. Legal & General Group Plc owned approximately 0.21% of Paycom Software as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Paycom Software in the 2nd quarter valued at $632,460,000. Reinhart Partners LLC. increased its stake in Paycom Software by 887.4% in the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker's stock valued at $95,351,000 after buying an additional 537,726 shares during the last quarter. Contour Asset Management LLC bought a new stake in Paycom Software during the 4th quarter worth about $60,333,000. Two Sigma Investments LP lifted its position in Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock worth $110,756,000 after buying an additional 370,219 shares in the last quarter. Finally, Invesco Ltd. lifted its position in 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 buying an additional 343,494 shares in the last quarter. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

PAYC has been the topic of several analyst reports. BTIG Research boosted their price target on shares of Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. KeyCorp increased their price target on shares of Paycom Software from $195.00 to $270.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. UBS Group increased their price target on shares of Paycom Software from $205.00 to $285.00 and gave the company a "buy" rating in a research note on Tuesday. Barclays raised their target price on shares of Paycom Software from $154.00 to $210.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. Finally, Guggenheim raised their target price on shares of Paycom Software from $180.00 to $225.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $214.23.

Insider Activity at Paycom Software

In other news, insider Terrell Shane Hadlock sold 2,577 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the transaction, the insider directly owned 70,152 shares in the company, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 13.20% of the company's stock.

Paycom Software Stock Performance

Paycom Software stock traded down $2.47 during midday trading on Wednesday, hitting $235.49. The company's stock had a trading volume of 606,210 shares, compared to its average volume of 1,285,655. Paycom Software, Inc. has a 1-year low of $104.90 and a 1-year high of $243.28. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The company has a 50-day moving average price of $175.79 and a two-hundred day moving average price of $145.23. The company has a market cap of $10.61 billion, a price-to-earnings ratio of 25.03, a PEG ratio of 1.33 and a beta of 0.78.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business's revenue was up 9.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.06 EPS. As a group, sell-side analysts predict that Paycom Software, Inc. will post 10.65 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be given a $0.375 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. Paycom Software's payout ratio is presently 15.94%.

Paycom Software 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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