Montanaro Asset Management Ltd Raises Stock Position in Paycom Software, Inc. (NYSE:PAYC)

Key Points

• Montanaro Asset Management Ltd increased its holdings in Paycom Software by 11.3% during the first quarter, bringing the total to 18,835 shares worth $4.12 million.
• Paycom Software reported a Q2 EPS of $2.06, exceeding the estimate of $1.78, with a revenue of $483.60 million for the quarter.
• The company declared a quarterly dividend of $0.375 per share, resulting in an annualized yield of 0.7%, payable on September 8th.

Montanaro Asset Management Ltd grew its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 11.3% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 18,835 shares of the software maker's stock after buying an additional 1,910 shares during the quarter. Montanaro Asset Management Ltd's holdings in Paycom Software were worth $4,115,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in PAYC. von Borstel & Associates Inc. bought a new position in shares of Paycom Software during the 1st quarter valued at $27,000. SouthState Corp purchased a new stake in Paycom Software during the first quarter valued at approximately $27,000. Golden State Wealth Management LLC increased its holdings in Paycom Software by 112.3% during the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock valued at $30,000 after buying an additional 73 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its holdings in Paycom Software by 135.9% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 151 shares of the software maker's stock valued at $33,000 after buying an additional 87 shares during the last quarter. Finally, Opal Wealth Advisors LLC purchased a new stake in shares of Paycom Software in the first quarter worth $35,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Down 1.6%

PAYC stock traded down $3.61 during trading on Thursday, hitting $217.88. The company had a trading volume of 43,383 shares, compared to its average volume of 624,658. The firm has a market capitalization of $12.61 billion, a P/E ratio of 29.47, a PEG ratio of 2.43 and a beta of 0.81. Paycom Software, Inc. has a 52-week low of $153.08 and a 52-week high of $267.76. The company has a 50 day simple moving average of $233.76 and a 200-day simple moving average of $227.26.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.06 EPS for the quarter, topping the consensus estimate of $1.78 by $0.28. The company had revenue of $483.60 million for the quarter, compared to the consensus estimate of $472.00 million. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The firm's revenue was up 10.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.62 EPS. Sell-side analysts forecast that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Shareholders of record on Monday, August 25th will be given a dividend of $0.375 per share. 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 0.7%. Paycom Software's dividend payout ratio (DPR) is 20.30%.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Barclays increased their price objective on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Piper Sandler increased 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 initiated coverage on shares of Paycom Software in a research report on Thursday. They set a "neutral" rating and a $230.00 target price for the company. Needham & Company LLC restated a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. Finally, JPMorgan Chase & Co. upped their target price on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Twelve research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, Paycom Software currently has an average rating of "Hold" and a consensus price target of $234.36.

Insider Buying and Selling at Paycom Software

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the firm's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $249.96, for a total transaction of $374,940.00. Following the transaction, the insider owned 27,233 shares of the company's stock, valued at approximately $6,807,160.68. This trade represents a 5.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Randall Peck sold 890 shares of the firm's stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $263.21, for a total transaction of $234,256.90. Following the transaction, the chief operating officer directly owned 49,394 shares in the company, valued at $13,000,994.74. This trade represents a 1.77% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 25,590 shares of company stock valued at $6,761,837. Company 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.