Polen Capital Management LLC Sells 801,395 Shares of Paycom Software, Inc. $PAYC

Key Points

• Polen Capital Management reduced its Paycom Software stake by 30.4% in the fourth quarter, selling 801,395 shares and leaving it with 1,835,028 shares valued at about $292.4 million.
• Paycom reported better-than-expected quarterly results, posting EPS of $3.15 versus the $2.99 estimate and revenue of $571.8 million, up 7.8% year over year.
• Analyst sentiment remains mixed: the stock’s consensus rating is Hold with an average target price of $159.67, even though several firms recently raised or cut their price targets.

Polen Capital Management LLC cut its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 30.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,835,028 shares of the software maker's stock after selling 801,395 shares during the period. Paycom Software accounts for 1.2% of Polen Capital Management LLC's holdings, making the stock its 27th biggest holding. Polen Capital Management LLC owned 3.26% of Paycom Software worth $292,430,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in PAYC. True Wealth Design LLC lifted its holdings in Paycom Software by 946.7% in the 4th quarter. True Wealth Design LLC now owns 157 shares of the software maker's stock worth $25,000 after purchasing an additional 142 shares in the last quarter. Clearstead Advisors LLC lifted its holdings in Paycom Software by 140.3% in the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock worth $26,000 after purchasing an additional 94 shares in the last quarter. Caitlin John LLC purchased a new position in Paycom Software in the 3rd quarter worth approximately $29,000. CYBER HORNET ETFs LLC purchased a new position in Paycom Software in the 2nd quarter worth approximately $29,000. Finally, MUFG Securities EMEA plc purchased a new position in Paycom Software in the 2nd quarter worth approximately $33,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Stock Performance

Shares of Paycom Software stock opened at $132.49 on Friday. The stock's fifty day moving average is $131.07 and its two-hundred day moving average is $138.76. The company has a market capitalization of $6.31 billion, a PE ratio of 15.32, a price-to-earnings-growth ratio of 1.19 and a beta of 0.79. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. Paycom Software, Inc. has a 52 week low of $104.90 and a 52 week high of $253.61.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, beating the consensus estimate of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The company had revenue of $571.80 million for the quarter, compared to the consensus estimate of $564.37 million. During the same quarter in the prior year, the company posted $2.80 EPS. Paycom Software's quarterly revenue was up 7.8% on a year-over-year basis. As a group, analysts expect that Paycom Software, Inc. will post 9.16 earnings per share for the current year.

Paycom Software Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th were given a dividend of $0.375 per share. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. Paycom Software's dividend payout ratio is presently 17.34%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PAYC. BTIG Research boosted their price target on Paycom Software from $140.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Guggenheim lowered their price target on Paycom Software from $210.00 to $180.00 and set a "buy" rating on the stock in a report on Thursday, February 12th. BMO Capital Markets boosted their price target on Paycom Software from $137.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, May 7th. Cantor Fitzgerald boosted their price target on Paycom Software from $115.00 to $135.00 and gave the stock a "neutral" rating in a report on Friday, March 6th. Finally, Jefferies Financial Group lowered their price target on Paycom Software from $190.00 to $130.00 and set a "hold" rating on the stock in a report on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $159.67.

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.

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