Sather Financial Group Inc Grows Stock Position in Paycom Software, Inc. $PAYC

Key Points

• Sather Financial Group boosted its Paycom stake 7.2% in Q4 to 268,030 shares (~$42.7M), equal to about 0.48% of Paycom and the firm's 20th-largest holding.
• Several large institutions—including Vanguard, State Street, Baillie Gifford, Invesco and Two Sigma—also increased positions, leaving institutional investors with roughly 87.77% ownership of the company.
• Paycom posted a modest EPS beat and 10.2% revenue growth for the quarter, has a market cap of about $5.9B and a P/E of 15.3, pays a $0.375 quarterly dividend (1.2% yield), and holds a consensus analyst rating of Hold with a $170.71 price target.

Sather Financial Group Inc boosted its stake in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 7.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 268,030 shares of the software maker's stock after acquiring an additional 18,035 shares during the quarter. Paycom Software comprises about 2.3% of Sather Financial Group Inc's holdings, making the stock its 20th largest holding. Sather Financial Group Inc owned approximately 0.48% of Paycom Software worth $42,713,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Paycom Software by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker's stock valued at $1,207,792,000 after purchasing an additional 179,218 shares in the last quarter. State Street Corp raised its position in shares of Paycom Software by 2.8% in the 3rd quarter. State Street Corp now owns 2,157,127 shares of the software maker's stock valued at $448,984,000 after purchasing an additional 59,217 shares in the last quarter. Baillie Gifford & Co. raised its position in shares of Paycom Software by 10.3% in the 3rd quarter. Baillie Gifford & Co. now owns 1,708,662 shares of the software maker's stock valued at $355,641,000 after purchasing an additional 158,967 shares in the last quarter. Invesco Ltd. raised its position in shares of Paycom Software by 9.3% in the 3rd quarter. Invesco Ltd. now owns 1,216,188 shares of the software maker's stock valued at $253,137,000 after purchasing an additional 103,801 shares in the last quarter. Finally, Two Sigma Investments LP raised its position in shares of Paycom Software by 228.7% in the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock valued at $110,756,000 after purchasing an additional 370,219 shares in the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

PAYC stock opened at $123.71 on Thursday. Paycom Software, Inc. has a 1-year low of $104.90 and a 1-year high of $267.76. The firm has a fifty day moving average price of $124.37 and a two-hundred day moving average price of $153.90. The firm has a market cap of $5.90 billion, a price-to-earnings ratio of 15.29, a PEG ratio of 1.26 and a beta of 0.79.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share for the quarter, beating the consensus estimate of $2.44 by $0.01. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The firm had revenue of $544.30 million during the quarter, compared to analyst estimates of $542.79 million. During the same quarter in the previous year, the firm earned $2.32 earnings per share. The firm's revenue for the quarter was up 10.2% compared to the same quarter last year. As a group, analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, March 23rd. Shareholders of record on Monday, March 9th were paid a dividend of $0.375 per share. The ex-dividend date was Monday, March 9th. This represents a $1.50 annualized dividend and a yield of 1.2%. Paycom Software's payout ratio is presently 18.54%.

Analyst Ratings Changes

A number of brokerages have issued reports on PAYC. Cantor Fitzgerald upped their target price on Paycom Software from $115.00 to $135.00 and gave the company a "neutral" rating in a research report on Friday, March 6th. TD Cowen cut their target price on Paycom Software from $200.00 to $184.00 and set a "buy" rating on the stock in a research report on Thursday, January 8th. UBS Group cut their target price on Paycom Software from $245.00 to $210.00 and set a "buy" rating on the stock in a research report on Monday, January 26th. BMO Capital Markets cut their target price on Paycom Software from $175.00 to $137.00 and set a "market perform" rating on the stock in a research report on Thursday, February 12th. Finally, Mizuho cut their target price on Paycom Software from $180.00 to $120.00 and set a "neutral" rating on the stock in a research report on Thursday, February 12th. Five investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $170.71.

About Paycom Software

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.

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.