Nordea Investment Management AB Cuts Position in Paycom Software, Inc. $PAYC

Key Points

• Nordea Investment Management AB reduced its stake in Paycom Software by 3.1% during the second quarter, owning 213,509 shares after selling 6,812 shares.
• Paycom Software reported earnings of $2.06 per share for the last quarter, exceeding analyst expectations, with quarterly revenue climbing to $483.60 million—up 10.5% year-over-year.
• JPMorgan Chase & Co. and Guggenheim recently altered their ratings and price targets for Paycom Software, indicating a consensus rating of "Hold" with an average price target of $245.62.

Nordea Investment Management AB lessened its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 3.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 213,509 shares of the software maker's stock after selling 6,812 shares during the quarter. Nordea Investment Management AB owned about 0.37% of Paycom Software worth $48,733,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Baillie Gifford & Co. grew its holdings in Paycom Software by 1,918.4% during the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after buying an additional 1,505,990 shares in the last quarter. Invesco Ltd. grew its holdings in Paycom Software by 5.0% during the 1st quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock valued at $269,398,000 after buying an additional 58,176 shares in the last quarter. Northern Trust Corp grew its holdings in Paycom Software by 2.3% during the 1st quarter. Northern Trust Corp now owns 740,385 shares of the software maker's stock valued at $161,759,000 after buying an additional 16,369 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Paycom Software by 12.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 633,626 shares of the software maker's stock worth $138,435,000 after purchasing an additional 69,884 shares during the period. Finally, Alyeska Investment Group L.P. purchased a new position in shares of Paycom Software in the 1st quarter worth approximately $114,440,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of PAYC stock opened at $200.68 on Friday. Paycom Software, Inc. has a 52-week low of $162.62 and a 52-week high of $267.76. The firm has a market capitalization of $11.61 billion, a P/E ratio of 27.16, a P/E/G ratio of 2.20 and a beta of 0.82. The stock has a 50 day moving average price of $216.27 and a 200 day moving average price of $228.30.

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

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were given a dividend of $0.375 per share. The ex-dividend date of this dividend was Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Paycom Software's payout ratio is 20.30%.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. JPMorgan Chase & Co. lifted their target price on Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Guggenheim assumed coverage on Paycom Software in a report on Friday, September 26th. They issued a "buy" rating and a $270.00 target price for the company. Cantor Fitzgerald upgraded Paycom Software to a "hold" rating in a report on Thursday, September 11th. KeyCorp lifted their target price on Paycom Software from $285.00 to $290.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Paycom Software in a report on Wednesday, October 8th. Four research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $245.62.

Insiders Place Their Bets

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction on Friday, September 12th. The stock was sold at an average price of $223.27, for a total transaction of $334,905.00. Following the completion of the sale, the insider directly owned 24,533 shares of the company's stock, valued at $5,477,482.91. The trade was a 5.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 10.90% of the stock is currently owned by company insiders.

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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