Paycom Software, Inc. $PAYC Shares Sold by Avory & Company LLC

Key Points

• Avory & Company LLC cut its Paycom stake by 50.8% in the first quarter, selling 20,369 shares and leaving it with 19,762 shares worth about $2.4 million.
• Paycom reported better-than-expected quarterly results, posting EPS of $3.15 versus the $2.99 consensus and revenue of $571.8 million, up 7.8% year over year.
• Analyst sentiment remains mixed but slightly cautious: the stock has an average “Hold” rating and a consensus price target of $159.25, while recent firm moves included both target increases and rating downgrades.

Avory & Company LLC lowered its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 50.8% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 19,762 shares of the software maker's stock after selling 20,369 shares during the period. Paycom Software makes up about 3.1% of Avory & Company LLC's investment portfolio, making the stock its 10th largest position. Avory & Company LLC's holdings in Paycom Software were worth $2,402,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the company. Sage Rhino Capital LLC purchased a new position in shares of Paycom Software in the first quarter valued at $265,000. Intrinsic Value Partners LLC increased its stake in Paycom Software by 43.4% during the 1st quarter. Intrinsic Value Partners LLC now owns 20,720 shares of the software maker's stock worth $2,518,000 after buying an additional 6,270 shares during the period. QRG Capital Management Inc. lifted its holdings in Paycom Software by 62.6% in the 1st quarter. QRG Capital Management Inc. now owns 2,466 shares of the software maker's stock worth $300,000 after buying an additional 949 shares in the last quarter. Lafayette Investments Inc. lifted its holdings in Paycom Software by 38.4% in the 1st quarter. Lafayette Investments Inc. now owns 45,308 shares of the software maker's stock worth $5,507,000 after buying an additional 12,565 shares in the last quarter. Finally, HB Wealth Management LLC purchased a new position in Paycom Software in the 1st quarter valued at about $299,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Stock Up 0.6%

NYSE:PAYC opened at $140.01 on Tuesday. The company has a market capitalization of $6.67 billion, a price-to-earnings ratio of 16.19, a price-to-earnings-growth ratio of 1.19 and a beta of 0.80. Paycom Software, Inc. has a one year low of $104.90 and a one year high of $248.95. The stock has a 50-day simple moving average of $133.28 and a 200 day simple moving average of $134.76. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.08 and a current ratio of 1.08.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The firm had revenue of $571.80 million for the quarter, compared to analysts' expectations of $564.37 million. During the same quarter in the prior year, the firm posted $2.80 earnings per share. Paycom Software's revenue for the quarter was up 7.8% compared to the same quarter last year. Sell-side analysts predict that Paycom Software, Inc. will post 9.32 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were given a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software's dividend payout ratio is currently 17.34%.

Analyst Upgrades and Downgrades

PAYC has been the subject of several recent analyst reports. BTIG Research raised their target price on Paycom Software from $140.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Paycom Software in a research note on Friday, May 1st. BMO Capital Markets increased their price target on Paycom Software from $137.00 to $145.00 and gave the company a "market perform" rating in a report on Thursday, May 7th. TD Cowen lowered their price objective on Paycom Software from $154.00 to $149.00 and set a "buy" rating for the company in a research note on Friday, June 26th. Finally, Barclays dropped their price objective on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Paycom Software has an average rating of "Hold" and an average price target of $159.25.

About Paycom Software

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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