Paycom Software, Inc. $PAYC Shares Sold by Callahan Advisors LLC

Key Points

• Callahan Advisors LLC cut its Paycom Software stake by 64.9% in the fourth quarter, leaving it with 6,500 shares worth about $1.04 million.
• Paycom reported better-than-expected Q1 earnings, posting $3.15 EPS on revenue of $571.8 million, with revenue up 7.8% year over year.
• Analysts are mixed on PAYC, with an average rating of “Hold” and an average price target of $159.67, while the stock opened at $137.89 and also carries a 1.1% dividend yield.

Callahan Advisors LLC reduced its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 64.9% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 6,500 shares of the software maker's stock after selling 12,040 shares during the quarter. Callahan Advisors LLC's holdings in Paycom Software were worth $1,036,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in PAYC. Allianz Asset Management GmbH raised its stake in Paycom Software by 10,106.6% in the 3rd quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker's stock valued at $101,355,000 after purchasing an additional 482,186 shares during the last quarter. Two Sigma Investments LP raised its stake in Paycom Software by 228.7% in the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock valued at $110,756,000 after purchasing an additional 370,219 shares during the last quarter. Woodline Partners LP acquired a new position in Paycom Software in the 3rd quarter valued at $58,452,000. Robeco Institutional Asset Management B.V. raised its stake in Paycom Software by 230.9% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker's stock valued at $54,387,000 after purchasing an additional 238,155 shares during the last quarter. Finally, Freestone Grove Partners LP acquired a new position in Paycom Software in the 3rd quarter valued at $42,414,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts recently commented on PAYC shares. UBS Group reduced their price objective on Paycom Software from $210.00 to $183.00 and set a "buy" rating for the company in a research note on Tuesday, April 21st. Barclays cut their target price on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Thursday, May 7th. BMO Capital Markets raised their target price on Paycom Software from $137.00 to $145.00 and gave the stock a "market perform" rating in a research note on Thursday, May 7th. Guggenheim cut their target price on Paycom Software from $210.00 to $180.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. Finally, Jefferies Financial Group cut their target price 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. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $159.67.

Paycom Software Stock Performance

NYSE PAYC opened at $137.89 on Thursday. The stock has a market cap of $6.57 billion, a PE ratio of 15.94, a P/E/G ratio of 1.23 and a beta of 0.77. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. Paycom Software, Inc. has a twelve month low of $104.90 and a twelve month high of $267.76. The stock has a fifty day simple moving average of $126.79 and a 200-day simple moving average of $142.34.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, topping analysts' consensus estimates of $2.99 by $0.16. The business had revenue of $571.80 million during the quarter, compared to analysts' expectations of $564.37 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The company's revenue was up 7.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.80 EPS. Equities analysts anticipate that Paycom Software, Inc. will post 9.09 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th will be issued a dividend of $0.375 per share. The ex-dividend date is Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. Paycom Software's dividend payout ratio is currently 17.34%.

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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