Wellington Management Group LLP Increases Position in Paycom Software, Inc. $PAYC

Key Points

• Wellington Management Group LLP increased its stake in Paycom Software by 35.8%, acquiring an additional 40,582 shares, now valuing their total holding at approximately $33.66 million.
• Paycom Software reported a better-than-expected earnings per share of $2.06 for the last quarter, surpassing analysts' estimates of $1.78, and year-over-year revenue growth was 10.5%.
• The company announced a quarterly dividend of $0.375, translating to an annualized yield of 0.6%, with the ex-dividend date set for August 25th.

Wellington Management Group LLP lifted its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 35.8% in the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 154,082 shares of the software maker's stock after purchasing an additional 40,582 shares during the period. Wellington Management Group LLP owned 0.27% of Paycom Software worth $33,664,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of PAYC. Baillie Gifford & Co. boosted its position in shares of Paycom Software by 1,918.4% in the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock worth $346,180,000 after purchasing an additional 1,505,990 shares in the last quarter. Sylebra Capital LLC raised its stake in Paycom Software by 63.8% in the 4th quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock worth $658,996,000 after acquiring an additional 1,252,617 shares during the last quarter. Zurich Insurance Group Ltd FI purchased a new position in Paycom Software in the 4th quarter worth $60,882,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Paycom Software in the 4th quarter worth $57,068,000. Finally, GAMMA Investing LLC raised its stake in Paycom Software by 33,661.7% in the 1st quarter. GAMMA Investing LLC now owns 197,506 shares of the software maker's stock worth $43,151,000 after acquiring an additional 196,921 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

PAYC stock traded up $0.52 during trading on Friday, hitting $226.23. The stock had a trading volume of 107,389 shares, compared to its average volume of 624,399. The stock has a market capitalization of $13.09 billion, a P/E ratio of 30.62, a PEG ratio of 2.49 and a beta of 0.81. The company's 50-day moving average price is $228.57 and its two-hundred day moving average price is $228.71. Paycom Software, Inc. has a twelve month low of $153.08 and a twelve month high of $267.76.

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

Paycom Software Announces Dividend

The company 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 $0.375 dividend. 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 payout ratio is presently 20.30%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Piper Sandler raised their target price on Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research note on Thursday, May 8th. Stifel Nicolaus lifted their price objective on Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research note on Thursday, May 8th. KeyCorp lifted their price objective on Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. lifted their price objective on Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Finally, Barclays lifted their price objective on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. One research analyst has rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, Paycom Software currently has an average rating of "Hold" and a consensus price target of $234.36.

Insiders Place Their Bets

In related news, insider Bradley Scott Smith sold 1,500 shares of the business's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the transaction, the insider owned 27,233 shares in the company, valued at approximately $6,807,160.68. The trade was a 5.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Randall Peck sold 890 shares of the business's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $263.21, for a total transaction of $234,256.90. Following the transaction, the chief operating officer owned 49,394 shares of the company's stock, valued at approximately $13,000,994.74. The trade was a 1.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 25,590 shares of company stock worth $6,761,837 over the last 90 days. Corporate insiders own 10.90% of the company's stock.

Paycom Software 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.