Royal Bank of Canada Cuts Position in Paycom Software, Inc. $PAYC

Key Points

• Royal Bank of Canada cut its Paycom Software stake by 64.6% in the first quarter, selling 104,059 shares and retaining 57,053 shares valued at approximately $6.9 million.
• Other major institutional investors increased their holdings, and hedge funds and institutions collectively own 87.77% of Paycom’s outstanding stock.
• Paycom reported quarterly EPS of $2.78 and revenue of $531.2 million, beating estimates, while revenue rose 9.8% year over year. The company also declared a $0.375 quarterly dividend, and analysts maintain a consensus “Hold” rating with an average price target of $204.69.

Royal Bank of Canada lessened its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 64.6% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 57,053 shares of the software maker's stock after selling 104,059 shares during the quarter. Royal Bank of Canada owned about 0.12% of Paycom Software worth $6,934,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. State Street Corp boosted its position in shares of Paycom Software by 0.4% during the 4th quarter. State Street Corp now owns 2,165,546 shares of the software maker's stock valued at $345,101,000 after acquiring an additional 8,419 shares during the last quarter. First Trust Advisors LP raised its stake in Paycom Software by 19.9% during the fourth quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker's stock valued at $265,419,000 after purchasing an additional 275,954 shares in the last quarter. Invesco Ltd. raised its stake in Paycom Software by 28.2% during the fourth quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker's stock valued at $248,551,000 after purchasing an additional 343,494 shares in the last quarter. Federated Hermes Inc. lifted its position in Paycom Software by 12.7% during the fourth quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker's stock valued at $99,500,000 after purchasing an additional 70,208 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its position in Paycom Software by 29.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 604,090 shares of the software maker's stock valued at $96,878,000 after purchasing an additional 138,795 shares during the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Stock Performance

Paycom Software stock opened at $212.12 on Wednesday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. Paycom Software, Inc. has a 1-year low of $104.90 and a 1-year high of $234.60. The firm has a market capitalization of $9.56 billion, a P/E ratio of 22.54, a price-to-earnings-growth ratio of 1.31 and a beta of 0.76. The company's 50-day moving average is $147.16 and its 200 day moving average is $135.51.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.06 earnings per share. Research analysts forecast that Paycom Software, Inc. will post 9.64 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be issued a dividend of $0.375 per share. The ex-dividend date is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Paycom Software's payout ratio is presently 15.94%.

Analyst Upgrades and Downgrades

PAYC has been the topic of several recent research reports. BTIG Research upped their target price on shares of Paycom Software from $160.00 to $230.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Citigroup boosted their price objective on Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Mizuho raised their price objective on Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Zacks Research upgraded Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. Finally, Stifel Nicolaus increased their price target on Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Paycom Software has a consensus rating of "Hold" and an average price target of $204.69.

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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