Paycom Software, Inc. $PAYC Stock Holdings Lessened by Riverbridge Partners LLC

Key Points

• Riverbridge Partners LLC has reduced its stake in Paycom Software by 7.3%, now holding approximately $108.8 million worth of shares, making it the firm’s 17th largest holding.
• Institutional ownership of Paycom Software is high, with 87.77% of the company's stock owned by institutional investors, and several firms like Baillie Gifford & Co. have significantly increased their stakes.
• Paycom Software's quarterly report revealed earnings per share (EPS) of $2.06, exceeding expectations, and the company also announced a quarterly dividend of $0.375 per share.

Riverbridge Partners LLC lowered its stake in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 7.3% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 470,081 shares of the software maker's stock after selling 36,765 shares during the period. Paycom Software makes up about 1.8% of Riverbridge Partners LLC's investment portfolio, making the stock its 17th largest holding. Riverbridge Partners LLC owned approximately 0.81% of Paycom Software worth $108,777,000 as of its most recent filing with the SEC.

Several other institutional investors also recently modified their holdings of the stock. Baillie Gifford & Co. increased its holdings in shares of Paycom Software by 1,918.4% in the first quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after buying an additional 1,505,990 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Paycom Software by 5.0% in the first quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock valued at $269,398,000 after buying an additional 58,176 shares in the last quarter. Northern Trust Corp increased its holdings in shares of Paycom Software by 2.3% in the first quarter. Northern Trust Corp now owns 740,385 shares of the software maker's stock valued at $161,759,000 after buying an additional 16,369 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Paycom Software by 12.4% in the first quarter. Goldman Sachs Group Inc. now owns 633,626 shares of the software maker's stock valued at $138,435,000 after buying an additional 69,884 shares in the last quarter. Finally, Alyeska Investment Group L.P. bought a new position in shares of Paycom Software in the first quarter valued at $114,440,000. Institutional investors own 87.77% of the company's stock.

Analyst Upgrades and Downgrades

PAYC has been the topic of several research analyst reports. KeyCorp boosted their price target on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Barclays upped their price target on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. BMO Capital Markets upped their price target on shares of Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. upped their price target on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Finally, Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a research note on Thursday, September 11th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned 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 $239.42.

Paycom Software Trading Down 1.1%

Shares of NYSE:PAYC opened at $217.33 on Thursday. The stock has a market capitalization of $12.58 billion, a PE ratio of 29.41, a P/E/G ratio of 2.42 and a beta of 0.81. Paycom Software, Inc. has a 1 year low of $158.03 and a 1 year high of $267.76. The firm has a fifty day moving average price of $225.47 and a 200 day moving average price of $229.63.

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

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 25th were issued a $0.375 dividend. The ex-dividend date was Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Paycom Software's dividend payout ratio is currently 20.30%.

Insider Transactions at Paycom Software

In related news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction on Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the completion of the sale, the insider directly owned 24,533 shares in the company, valued at approximately $5,477,482.91. This represents a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 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.

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