Paycom Software, Inc. $PAYC Position Boosted by Reinhart Partners LLC.

Key Points

• Reinhart Partners increased its Paycom position by 20.1% in the second quarter, acquiring 204,191 shares for a total holding of 1.22 million shares valued at approximately $153.3 million.
• Paycom reported better-than-expected second-quarter results, with revenue up 9.8% year over year to $531.2 million and non-GAAP EPS of $2.78. Management also raised its 2026 outlook, citing automation, AI initiatives, and margin expansion.
• Analyst sentiment remains mixed despite several price-target increases: the consensus rating is “Hold” with an average target of $204.69, below the stock’s reported trading level of about $214.52.

Reinhart Partners LLC. increased its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 20.1% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,219,906 shares of the software maker's stock after acquiring an additional 204,191 shares during the period. Paycom Software comprises approximately 3.5% of Reinhart Partners LLC.'s portfolio, making the stock its 7th biggest holding. Reinhart Partners LLC. owned about 2.56% of Paycom Software worth $153,320,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. State Street Corp boosted its position in Paycom Software by 0.4% in the fourth quarter. State Street Corp now owns 2,165,546 shares of the software maker's stock worth $345,101,000 after purchasing an additional 8,419 shares during the last quarter. First Trust Advisors LP raised its stake in shares of Paycom Software by 19.9% during the 4th quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker's stock worth $265,419,000 after purchasing an additional 275,954 shares during the period. Invesco Ltd. boosted its holdings in shares of Paycom Software by 28.2% in 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 during the last quarter. Federated Hermes Inc. boosted its holdings in shares of Paycom Software by 12.7% in the 4th quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker's stock worth $99,500,000 after buying an additional 70,208 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its position in Paycom Software by 29.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 604,090 shares of the software maker's stock valued at $96,878,000 after buying an additional 138,795 shares during the period. 87.77% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Paycom Software

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q2 results exceeded expectations: Paycom reported $531.2 million in revenue, up 9.8% year over year, and $2.78 in non-GAAP EPS, beating consensus estimates. Recurring sales growth and expanding margins added to the positive reaction. Paycom's Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its 2026 forecast: Paycom now expects revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. Free cash flow is expected to exceed $650 million, supporting the improved earnings outlook. Paycom forecasts 2026 revenue and EBITDA
• Positive Sentiment: Automation and AI are improving profitability: Management highlighted savings from automation, internally hosted AI models, and new product releases as drivers of operating leverage and demand for Paycom’s employee-management services. Paycom raises annual forecast on AI-driven demand
• Positive Sentiment: Analysts lifted price targets: KeyBanc raised its target to $270 with an overweight rating, while TD Cowen raised its target to $244 and upgraded the stock to buy. BTIG also increased its target to $230 and maintained a buy rating. Paycom Software analysts boost forecasts
• Neutral Sentiment: Capital returns remain supportive: Paycom repurchased roughly 2.57 million shares for $345.9 million during the quarter, which may enhance per-share results but also reflects substantial cash deployment.
• Negative Sentiment: Some analysts remain cautious at the higher valuation: Barclays, BMO, Stifel, UBS, and Cantor Fitzgerald raised targets but retained neutral or hold-equivalent ratings, with targets ranging from $195 to $210—below the recent market level. Mixed institutional positioning also suggests not all investors share the bullish view.

Paycom Software Trading Down 0.7%

NYSE:PAYC opened at $214.52 on Friday. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $234.60. The stock's fifty day moving average price is $144.49 and its two-hundred day moving average price is $134.69. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.08. The company has a market cap of $10.22 billion, a P/E ratio of 22.80, a P/E/G ratio of 1.82 and a beta of 0.76.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, beating the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million during the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The firm's quarterly revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.06 earnings per share. As a group, analysts expect that Paycom Software, Inc. will post 9.44 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be issued a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, August 24th. Paycom Software's payout ratio is presently 17.34%.

Analyst Upgrades and Downgrades

PAYC has been the subject of a number of research analyst reports. Cantor Fitzgerald raised their price objective on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a report on Thursday. UBS Group boosted their target price on shares of Paycom Software from $195.00 to $205.00 and gave the company a "buy" rating in a research note on Thursday. Zacks Research raised shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 18th. BTIG Research raised their price target on shares of Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, KeyCorp lifted their price target on shares of Paycom Software from $195.00 to $270.00 and gave the stock an "overweight" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $204.69.

Paycom Software Company 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.

Want to see what other hedge funds are holding PAYC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paycom Software, Inc. (NYSE:PAYC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source