Paycom Software, Inc. $PAYC Stock Position Lowered by Valley National Advisers Inc.

Key Points

• Valley National Advisers cut its Paycom Software position by 98.7% in the third quarter, leaving the fund with 133 shares worth approximately $29,000. Institutional investors collectively own 87.77% of PAYC.
• Analyst sentiment remains mixed: Paycom has a consensus rating of “Hold” from 16 analysts, with an average price target of $230.50, although BTIG raised its target to $305 and maintained a “Buy” rating.
• Paycom reported quarterly EPS of $2.78, beating estimates of $2.38, while revenue rose 9.8% year over year to $531.2 million. The company also announced a quarterly dividend of $0.375 per share, equivalent to a 0.6% annualized yield.

Valley National Advisers Inc. reduced its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 98.7% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 133 shares of the software maker's stock after selling 9,883 shares during the period. Valley National Advisers Inc.'s holdings in Paycom Software were worth $29,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the company. TD Waterhouse Canada Inc. acquired a new stake in shares of Paycom Software in the third quarter valued at approximately $25,000. Elevation Wealth Partners LLC grew its position in shares of Paycom Software by 76.5% during the third quarter. Elevation Wealth Partners LLC now owns 233 shares of the software maker's stock worth $51,000 after acquiring an additional 101 shares during the last quarter. Caitlin John LLC purchased a new position in shares of Paycom Software during the second quarter worth approximately $31,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paycom Software in the 2nd quarter valued at $33,000. Finally, EFG International AG acquired a new position in shares of Paycom Software in the 2nd quarter valued at $36,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, insider Shane Hadlock sold 2,577 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the sale, the insider directly owned 70,152 shares of the company's stock, valued at $16,668,115.20. This trade represents a 3.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 13.20% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a report on Tuesday, August 25th. BTIG Research increased their target price on shares of Paycom Software from $230.00 to $305.00 and gave the stock a "buy" rating in a research note on Monday. Weiss Ratings raised Paycom Software from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Stifel Nicolaus boosted their price target on Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. Finally, Wall Street Zen downgraded Paycom Software from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. Five analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Paycom Software currently has a consensus rating of "Hold" and a consensus price target of $230.50.

Paycom Software Stock Down 2.4%

Shares of NYSE:PAYC opened at $268.10 on Tuesday. Paycom Software, Inc. has a fifty-two week low of $104.90 and a fifty-two week high of $275.22. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm's 50-day simple moving average is $231.44 and its 200-day simple moving average is $161.48. The company has a market cap of $12.08 billion, a price-to-earnings ratio of 28.49, a PEG ratio of 1.47 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The firm had revenue of $531.20 million during the quarter, compared to analysts' expectations of $513.12 million. During the same period in the prior year, the company posted $2.06 earnings per share. The firm's revenue for the quarter was up 9.8% on a year-over-year basis. As a group, equities research analysts predict that Paycom Software, Inc. will post 10.80 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were paid a dividend of $0.3750 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, August 24th. Paycom Software's dividend payout ratio is 15.94%.

Paycom Software Company 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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