Nordea Investment Management AB Acquires 127,493 Shares of Paycom Software, Inc. $PAYC

Key Points

• Nordea Investment Management AB boosted its Paycom stake by 203.1%, purchasing 127,493 shares to own 190,276 shares (≈0.34% of the company) valued at about $30.34 million at the end of the quarter.
• Paycom reported Q4 EPS of $2.45 (vs. $2.44 est.) and revenue of $544.3M (+10.2% y/y), recently paid a $0.375 quarterly dividend (1.3% yield), but the stock traded down ~6.2% to $118.74 as analysts cut price targets and the Street's average rating sits at "Hold" with a $170.71 target.

Nordea Investment Management AB grew its stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 203.1% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 190,276 shares of the software maker's stock after acquiring an additional 127,493 shares during the period. Nordea Investment Management AB owned 0.34% of Paycom Software worth $30,336,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. UMB Bank n.a. lifted its position in Paycom Software by 7.6% during the third quarter. UMB Bank n.a. now owns 789 shares of the software maker's stock valued at $164,000 after purchasing an additional 56 shares in the last quarter. ORG Wealth Partners LLC grew its holdings in Paycom Software by 4.4% during the third quarter. ORG Wealth Partners LLC now owns 1,390 shares of the software maker's stock valued at $289,000 after purchasing an additional 59 shares during the period. Mackenzie Financial Corp increased its position in Paycom Software by 4.0% in the third quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker's stock worth $338,000 after buying an additional 63 shares in the last quarter. Davis Investment Partners LLC raised its stake in shares of Paycom Software by 2.3% in the fourth quarter. Davis Investment Partners LLC now owns 2,988 shares of the software maker's stock worth $455,000 after buying an additional 68 shares during the period. Finally, Compound Planning Inc. raised its stake in shares of Paycom Software by 2.9% in the third quarter. Compound Planning Inc. now owns 2,899 shares of the software maker's stock worth $603,000 after buying an additional 83 shares during the period. 87.77% of the stock is owned by institutional investors.

Paycom Software Trading Down 6.2%

Shares of PAYC opened at $118.74 on Wednesday. The business's 50 day moving average is $131.69 and its 200 day moving average is $164.57. The company has a market capitalization of $6.45 billion, a PE ratio of 14.68, a price-to-earnings-growth ratio of 1.33 and a beta of 0.80. Paycom Software, Inc. has a 12-month low of $104.90 and a 12-month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.01. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The business had revenue of $544.30 million during the quarter, compared to the consensus estimate of $542.79 million. During the same period in the prior year, the company posted $2.32 EPS. The firm's revenue for the quarter was up 10.2% compared to the same quarter last year. Equities research analysts predict that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, March 23rd. Stockholders of record on Monday, March 9th were issued a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Monday, March 9th. Paycom Software's payout ratio is 18.54%.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PAYC. Jefferies Financial Group cut their price objective on Paycom Software from $190.00 to $130.00 and set a "hold" rating for the company in a research note on Thursday, February 12th. TD Cowen decreased their target price on shares of Paycom Software from $200.00 to $184.00 and set a "buy" rating on the stock in a research note on Thursday, January 8th. BMO Capital Markets lowered their price target on shares of Paycom Software from $175.00 to $137.00 and set a "market perform" rating on the stock in a report on Thursday, February 12th. UBS Group dropped their price target on shares of Paycom Software from $245.00 to $210.00 and set a "buy" rating for the company in a research report on Monday, January 26th. Finally, Citigroup reduced their price objective on shares of Paycom Software from $185.00 to $128.00 and set a "neutral" rating for the company in a research note on Friday, February 13th. Five analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Paycom Software presently has an average rating of "Hold" and an average target price of $170.71.

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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