Paycom Software, Inc. $PAYC Stock: Crossmark Global Holdings Inc. Boosts Holdings

Key Points

• Crossmark Global Holdings increased its Paycom position by 395.4% in the third quarter, ending with 9,620 shares valued at approximately $2.1 million. Institutional investors collectively own 87.77% of PAYC.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS versus the $2.38 consensus and $531.2 million in revenue, up 9.8% year over year. The company also pays a $0.375 quarterly dividend, yielding about 0.5%.
• Analyst sentiment remains mixed: PAYC has a consensus “Hold” rating and an average price target of $225.14, despite its shares opening at $274.64 and TD Cowen raising its target to $286.

Crossmark Global Holdings Inc. raised its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 395.4% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 9,620 shares of the software maker's stock after buying an additional 7,678 shares during the quarter. Crossmark Global Holdings Inc.'s holdings in Paycom Software were worth $2,094,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Paycom Software in the 2nd quarter worth about $632,460,000. Bank of New York Mellon Corp bought a new position in shares of Paycom Software during the second quarter worth about $42,858,000. Equity Investment Corp bought a new position in shares of Paycom Software during the second quarter worth about $37,085,000. Bank of America Corp DE bought a new position in shares of Paycom Software during the second quarter worth about $34,146,000. Finally, Reinhart Partners LLC. grew its position in shares of Paycom Software by 20.1% during the second quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker's stock worth $153,320,000 after acquiring an additional 204,191 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of PAYC stock opened at $274.64 on Friday. The company has a market capitalization of $12.38 billion, a price-to-earnings ratio of 29.19, a P/E/G ratio of 1.47 and a beta of 0.82. Paycom Software, Inc. has a 1-year low of $104.90 and a 1-year high of $275.22. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. The stock's fifty day simple moving average is $231.72 and its 200-day simple moving average is $173.62.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The firm had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. During the same period last year, the company posted $2.06 EPS. The business's quarterly revenue was up 9.8% compared to the same quarter last year. On average, sell-side analysts predict that Paycom Software, Inc. will post 10.80 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were issued a dividend of $0.3750 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Monday, August 24th. Paycom Software's dividend payout ratio (DPR) is currently 15.94%.

Insider Buying and Selling

In related news, insider Shane Hadlock sold 2,577 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total transaction of $612,295.20. Following the transaction, the insider directly owned 70,152 shares of the company's stock, valued at approximately $16,668,115.20. The trade was a 3.54% 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. Insiders own 13.20% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on PAYC shares. TD Cowen upped their target price on shares of Paycom Software from $244.00 to $286.00 and gave the stock a "buy" rating in a research report on Friday, October 2nd. Stifel Nicolaus increased their price objective on Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. raised their target price on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a research report on Tuesday, August 25th. Bank of America started coverage on Paycom Software in a research note on Tuesday, September 29th. They set an "underperform" rating and a $200.00 target price on the stock. Finally, BMO Capital Markets boosted their price target on Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. Five research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $225.14.

Paycom Software Profile

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company's software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.

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