Reinhart Partners LLC. Sells 190,637 Shares of Paycom Software, Inc. $PAYC

Key Points

• Reinhart Partners reduced its Paycom stake by 15.6%, selling 190,637 shares and retaining 1.03 million shares worth approximately $224 million. Paycom remains the fund’s second-largest holding and represents about 5.4% of its portfolio.
• Paycom reported stronger-than-expected quarterly results, with EPS of $2.78 versus the $2.38 consensus estimate and revenue of $531.2 million, up 9.8% year over year. The company also pays a quarterly dividend of $0.375 per share, yielding about 0.6% annually.
• Analyst sentiment is mixed: Paycom has an overall “Hold” consensus rating and an average price target of $216.93, despite recent targets ranging from $200 to $286. The stock opened at $232.29, near its 52-week high of $244.98.

Reinhart Partners LLC. lowered its stake in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 15.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,029,269 shares of the software maker's stock after selling 190,637 shares during the quarter. Paycom Software comprises about 5.4% of Reinhart Partners LLC.'s portfolio, making the stock its 2nd biggest holding. Reinhart Partners LLC. owned about 2.28% of Paycom Software worth $224,020,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Paycom Software in the 2nd quarter worth approximately $632,460,000. Contour Asset Management LLC acquired a new stake in Paycom Software in the 4th quarter valued at approximately $60,333,000. Bank of New York Mellon Corp purchased a new stake in Paycom Software in the second quarter valued at approximately $42,858,000. River Road Asset Management LLC raised its position in Paycom Software by 481.9% in the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker's stock valued at $62,533,000 after purchasing an additional 324,970 shares during the period. Finally, Equity Investment Corp acquired a new position in Paycom Software during the second quarter worth $37,085,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Insiders Place Their Bets

In other news, insider Shane Hadlock sold 241 shares of Paycom Software stock in a transaction on Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the completion of the transaction, the insider owned 69,911 shares of the company's stock, valued at $16,783,533.77. The trade was a 0.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 13.20% of the company's stock.

Paycom Software Stock Up 1.0%

PAYC opened at $232.29 on Friday. Paycom Software, Inc. has a 52 week low of $104.90 and a 52 week high of $244.98. The business has a 50 day moving average price of $221.50 and a two-hundred day moving average price of $164.36. 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 company has a market cap of $10.47 billion, a PE ratio of 24.69, a P/E/G ratio of 1.25 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. The business had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business's revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business posted $2.06 earnings per share. As a group, research analysts anticipate that Paycom Software, Inc. will post 10.64 EPS for the current year.

Paycom Software Announces Dividend

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

Wall Street Analyst Weigh In

Several research firms have weighed in on PAYC. BTIG Research lifted their target price on Paycom Software from $160.00 to $230.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Wall Street Zen downgraded shares of Paycom Software from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. Bank of America started coverage on Paycom Software in a research report on Tuesday, September 29th. They set an "underperform" rating and a $200.00 target price on the stock. BMO Capital Markets boosted their price target on shares of Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a research report on Thursday, August 6th. Finally, TD Cowen upped their price objective on shares of Paycom Software from $244.00 to $286.00 and gave the company a "buy" rating in a research note on Friday, October 2nd. Five research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $216.93.

About Paycom Software

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.

Want to see what other hedge funds are holding PAYC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paycom Software, Inc. (NYSE:PAYC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.