Principal Financial Group Inc. Buys 181,346 Shares of Paycom Software, Inc. $PAYC

Key Points

• Principal Financial Group increased its stake in Paycom Software by 290.5% in the first quarter, buying 181,346 additional shares and bringing its total holding to 243,762 shares worth about $29.6 million.
• Paycom reported better-than-expected quarterly results, with earnings of $3.15 per share versus estimates of $2.99 and revenue of $571.8 million, up 7.8% from a year earlier.
• Analysts remain mixed but generally constructive on the stock, with a consensus rating of “Moderate Buy” and an average target price of $159.25; Paycom also pays a quarterly dividend yielding about 1.0% annually.

Principal Financial Group Inc. lifted its stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 290.5% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 243,762 shares of the software maker's stock after buying an additional 181,346 shares during the quarter. Principal Financial Group Inc. owned about 0.51% of Paycom Software worth $29,627,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of PAYC. Willis Investment Counsel lifted its stake in Paycom Software by 122.2% in the 4th quarter. Willis Investment Counsel now owns 22,100 shares of the software maker's stock valued at $3,522,000 after purchasing an additional 12,156 shares during the last quarter. Berkeley Inc lifted its stake in shares of Paycom Software by 47.5% in the 4th quarter. Berkeley Inc now owns 40,794 shares of the software maker's stock valued at $6,501,000 after acquiring an additional 13,140 shares during the last quarter. Nordea Investment Management AB lifted its stake in shares of Paycom Software by 203.1% in the 4th quarter. Nordea Investment Management AB now owns 190,276 shares of the software maker's stock valued at $30,336,000 after acquiring an additional 127,493 shares during the last quarter. Harbor Capital Advisors Inc. bought a new stake in Paycom Software during the 4th quarter worth $1,911,000. Finally, Northwestern Mutual Wealth Management Co. grew its position in Paycom Software by 1,151.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 170,854 shares of the software maker's stock worth $27,227,000 after acquiring an additional 157,201 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

Paycom Software Trading Up 0.3%

PAYC opened at $148.44 on Monday. Paycom Software, Inc. has a one year low of $104.90 and a one year high of $248.95. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The business has a 50 day simple moving average of $135.96 and a two-hundred day simple moving average of $133.59. The firm has a market capitalization of $7.07 billion, a price-to-earnings ratio of 17.16, a PEG ratio of 1.26 and a beta of 0.80.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, topping analysts' consensus estimates of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The firm had revenue of $571.80 million for the quarter, compared to analyst estimates of $564.37 million. During the same period last year, the company earned $2.80 EPS. The business's quarterly revenue was up 7.8% compared to the same quarter last year. Analysts predict that Paycom Software, Inc. will post 9.32 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were given a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software's payout ratio is presently 17.34%.

Analyst Ratings Changes

Several research firms have commented on PAYC. Citigroup increased their target price on Paycom Software from $120.00 to $136.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Mizuho boosted their price target on Paycom Software from $120.00 to $130.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Zacks Research raised Paycom Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. TD Cowen cut their target price on shares of Paycom Software from $154.00 to $149.00 and set a "buy" rating on the stock in a research report on Friday, June 26th. Finally, BMO Capital Markets boosted their target price on shares of Paycom Software from $137.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $159.25.

Paycom Software 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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