Sei Investments Co. Decreases Stake in Paycom Software, Inc. $PAYC

Key Points

• Sei Investments Co. cut its Paycom Software stake by 89.8% in the first quarter, selling 136,359 shares and retaining 15,510 shares valued at approximately $1.885 million. Institutional investors still own 87.77% of PAYC.
• Paycom reported better-than-expected quarterly results, with revenue up 9.8% year over year to $531.2 million and non-GAAP EPS of $2.78 versus the $2.38 consensus estimate. Management also raised its 2026 revenue and adjusted EBITDA forecasts, citing automation and AI-driven efficiency.
• Analyst sentiment remains mixed despite several price-target increases: Paycom has a consensus “Hold” rating and an average target of $204.69, below its recent $214.52 share price. The company also announced a quarterly dividend of $0.375 per share, representing a 0.7% annualized yield.

Sei Investments Co. reduced its holdings in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 89.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 15,510 shares of the software maker's stock after selling 136,359 shares during the quarter. Sei Investments Co.'s holdings in Paycom Software were worth $1,885,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently modified their holdings of the business. Lido Advisors LLC increased its holdings in Paycom Software by 9.2% in the 1st quarter. Lido Advisors LLC now owns 6,866 shares of the software maker's stock worth $835,000 after buying an additional 580 shares in the last quarter. Alpha Family Trust lifted its stake in Paycom Software by 30.7% during the 1st quarter. Alpha Family Trust now owns 2,020 shares of the software maker's stock valued at $246,000 after acquiring an additional 475 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of Paycom Software by 165.8% during the 1st quarter. PNC Financial Services Group Inc. now owns 14,472 shares of the software maker's stock valued at $1,759,000 after acquiring an additional 9,028 shares during the last quarter. Florida Financial Advisors LLC purchased a new stake in shares of Paycom Software during the 1st quarter valued at about $286,000. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Paycom Software by 10.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker's stock valued at $65,435,000 after acquiring an additional 49,460 shares during the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software News Roundup

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q2 results exceeded expectations: Paycom reported $531.2 million in revenue, up 9.8% year over year, and $2.78 in non-GAAP EPS, beating consensus estimates. Recurring sales growth and expanding margins added to the positive reaction. Paycom's Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its 2026 forecast: Paycom now expects revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. Free cash flow is expected to exceed $650 million, supporting the improved earnings outlook. Paycom forecasts 2026 revenue and EBITDA
• Positive Sentiment: Automation and AI are improving profitability: Management highlighted savings from automation, internally hosted AI models, and new product releases as drivers of operating leverage and demand for Paycom’s employee-management services. Paycom raises annual forecast on AI-driven demand
• Positive Sentiment: Analysts lifted price targets: KeyBanc raised its target to $270 with an overweight rating, while TD Cowen raised its target to $244 and upgraded the stock to buy. BTIG also increased its target to $230 and maintained a buy rating. Paycom Software analysts boost forecasts
• Neutral Sentiment: Capital returns remain supportive: Paycom repurchased roughly 2.57 million shares for $345.9 million during the quarter, which may enhance per-share results but also reflects substantial cash deployment.
• Negative Sentiment: Some analysts remain cautious at the higher valuation: Barclays, BMO, Stifel, UBS, and Cantor Fitzgerald raised targets but retained neutral or hold-equivalent ratings, with targets ranging from $195 to $210—below the recent market level. Mixed institutional positioning also suggests not all investors share the bullish view.

Analyst Upgrades and Downgrades

PAYC has been the subject of several research reports. Zacks Research raised shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. TD Cowen raised their target price on shares of Paycom Software from $149.00 to $244.00 and gave the stock a "buy" rating in a report on Thursday. Stifel Nicolaus lifted their target price on shares of Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a research report on Thursday. Cantor Fitzgerald lifted their target price on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday. Finally, UBS Group boosted their target price on shares of Paycom Software from $195.00 to $205.00 and gave the company a "buy" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $204.69.

Paycom Software Trading Down 0.2%

Paycom Software stock opened at $214.52 on Monday. The business has a 50-day simple moving average of $144.49 and a two-hundred day simple moving average of $134.60. The company has a market cap of $9.67 billion, a P/E ratio of 22.80, a P/E/G ratio of 1.33 and a beta of 0.75. Paycom Software, Inc. has a 52-week low of $104.90 and a 52-week high of $234.60. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, beating the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The firm had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the prior year, the firm earned $2.06 EPS. The business's revenue for the quarter was up 9.8% compared to the same quarter last year. Analysts predict that Paycom Software, Inc. will post 9.53 EPS for the current year.

Paycom Software Announces Dividend

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

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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