Paycom Software, Inc. $PAYC Stake Lowered by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its Paycom Software stake by 28.2% in the first quarter, selling 84,560 shares and retaining 215,550 shares valued at approximately $26.2 million. Institutional investors collectively own 87.77% of PAYC.
• Paycom’s latest quarterly results exceeded expectations, with earnings of $3.15 per share versus the $2.99 consensus and revenue of $571.8 million, up 7.8% year over year. The company also pays a quarterly dividend of $0.375 per share, yielding about 0.9% annually.
• Analyst sentiment remains positive but mixed: PAYC has a consensus rating of “Moderate Buy” and an average price target of $159.75, below the reported share price of $169.23.

Arrowstreet Capital Limited Partnership decreased its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 28.2% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 215,550 shares of the software maker's stock after selling 84,560 shares during the period. Arrowstreet Capital Limited Partnership owned 0.45% of Paycom Software worth $26,198,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Reinhart Partners LLC. raised its holdings in shares of Paycom Software by 887.4% during the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker's stock valued at $95,351,000 after purchasing an additional 537,726 shares in the last quarter. Contour Asset Management LLC acquired a new stake in Paycom Software in the 4th quarter worth approximately $60,333,000. Two Sigma Investments LP boosted its position in Paycom Software by 228.7% during the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock worth $110,756,000 after purchasing an additional 370,219 shares during the period. Invesco Ltd. boosted its position in Paycom Software by 28.2% during the fourth quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker's stock worth $248,551,000 after purchasing an additional 343,494 shares during the period. Finally, River Road Asset Management LLC grew its holdings in Paycom Software by 481.9% during the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker's stock valued at $62,533,000 after purchasing an additional 324,970 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of NYSE PAYC opened at $169.23 on Thursday. The firm has a market capitalization of $8.06 billion, a price-to-earnings ratio of 19.56, a PEG ratio of 1.37 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 business has a fifty day simple moving average of $138.02 and a 200 day simple moving average of $133.21. 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 (NYSE:PAYC - Get Free Report) last posted 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. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million for the quarter, compared to the consensus estimate of $564.37 million. During the same quarter in the previous year, the company earned $2.80 earnings per share. The business's revenue was up 7.8% compared to the same quarter last year. Sell-side analysts expect that Paycom Software, Inc. will post 9.37 EPS for the current year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were issued a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software's payout ratio is presently 17.34%.

Analyst Upgrades and Downgrades

PAYC has been the topic of a number of recent analyst reports. TD Cowen reduced their price objective on shares of Paycom Software from $154.00 to $149.00 and set a "buy" rating for the company in a research note on Friday, June 26th. BMO Capital Markets raised their target price on shares of Paycom Software from $137.00 to $145.00 and gave the company a "market perform" rating in a research note on Thursday, May 7th. Zacks Research upgraded shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. Weiss Ratings upgraded Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. Finally, UBS Group cut their price objective on Paycom Software from $210.00 to $183.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $159.75.

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.