American Century Companies Inc. Acquires 63,996 Shares of Paycom Software, Inc. $PAYC

Key Points

• American Century Companies Inc. significantly increased its stake in Paycom Software by 121.3%, owning 116,751 shares worth approximately $25.5 million after acquiring an additional 63,996 shares.
• Paycom Software reported $2.06 earnings per share for the last quarter, surpassing analysts' expectations of $1.78, with a revenue increase of 10.5% year-over-year.
• The company announced a quarterly dividend of $0.375, which reflects an annualized dividend yield of 0.6%, with a payout ratio of 20.30%.

American Century Companies Inc. boosted its holdings in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 121.3% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 116,751 shares of the software maker's stock after acquiring an additional 63,996 shares during the quarter. American Century Companies Inc. owned 0.20% of Paycom Software worth $25,508,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of PAYC. Brighton Jones LLC acquired a new stake in Paycom Software during the 4th quarter worth about $638,000. GeoWealth Management LLC lifted its holdings in shares of Paycom Software by 34.6% during the 4th quarter. GeoWealth Management LLC now owns 568 shares of the software maker's stock valued at $116,000 after buying an additional 146 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Paycom Software by 20.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 300,538 shares of the software maker's stock valued at $61,603,000 after buying an additional 51,317 shares during the last quarter. MetLife Investment Management LLC lifted its holdings in shares of Paycom Software by 1.2% during the 4th quarter. MetLife Investment Management LLC now owns 14,321 shares of the software maker's stock valued at $2,935,000 after buying an additional 170 shares during the last quarter. Finally, State of Tennessee Department of Treasury lifted its holdings in shares of Paycom Software by 88.2% during the 4th quarter. State of Tennessee Department of Treasury now owns 12,341 shares of the software maker's stock valued at $2,530,000 after buying an additional 5,782 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Paycom Software

In other news, insider Bradley Scott Smith sold 1,500 shares of the business's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the sale, the insider owned 27,233 shares in the company, valued at $6,807,160.68. The trade was a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Chad R. Richison sold 23,200 shares of the company's stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $265.20, for a total value of $6,152,640.00. Following the completion of the sale, the chief executive officer owned 3,224,049 shares of the company's stock, valued at $855,017,794.80. This represents a 0.71% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 25,590 shares of company stock worth $6,761,837 over the last 90 days. 10.90% of the stock is owned by insiders.

Analyst Ratings Changes

A number of brokerages recently weighed in on PAYC. BMO Capital Markets raised their price objective on Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research note on Thursday, August 7th. Cantor Fitzgerald began coverage on Paycom Software in a research note on Thursday, August 14th. They issued a "neutral" rating and a $230.00 price objective on the stock. Barclays raised their price objective on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. lifted their price target on Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Finally, Stifel Nicolaus lifted their price objective on Paycom Software from $187.00 to $215.00 and gave the stock a "hold" rating in a report on Thursday, May 8th. One equities research analyst has rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $234.36.

Paycom Software Stock Performance

Paycom Software stock traded up $1.09 on Wednesday, reaching $227.06. The company's stock had a trading volume of 213,465 shares, compared to its average volume of 625,312. The company has a market cap of $13.14 billion, a price-to-earnings ratio of 30.73, a PEG ratio of 2.52 and a beta of 0.81. The business's fifty day moving average price is $228.80 and its 200 day moving average price is $228.57. Paycom Software, Inc. has a twelve month low of $153.08 and a twelve month high of $267.76.

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

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Stockholders of record on Monday, August 25th will be given a dividend of $0.375 per share. The ex-dividend date is Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.7%. Paycom Software's payout ratio is presently 20.30%.

About Paycom Software

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.