SummitTX Capital L.P. Takes $1.19 Million Position in Paycom Software, Inc. $PAYC

Key Points

• SummitTX Capital initiated a roughly $1.19 million position in Paycom Software, purchasing 9,790 shares during the first quarter. Institutional investors and hedge funds collectively own 87.77% of the company.
• Paycom exceeded quarterly expectations, reporting $3.15 in EPS versus the $2.99 consensus and $571.8 million in revenue, up 7.8% year over year. The company also pays a quarterly dividend of $0.375, or $1.50 annually.
• Analysts hold a “Moderate Buy” consensus rating, with one Strong Buy, five Buy, and eight Hold ratings; the average price target is $159.75, below the reported share price of $169.23.

SummitTX Capital L.P. bought a new position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 9,790 shares of the software maker's stock, valued at approximately $1,190,000.

Several other large investors have also made changes to their positions in the company. Brown Brothers Harriman & Co. raised its holdings in Paycom Software by 190.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock worth $25,000 after purchasing an additional 101 shares during the last quarter. Clearstead Advisors LLC boosted its stake in shares of Paycom Software by 140.3% in the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new stake in shares of Paycom Software during the 2nd quarter worth approximately $29,000. MUFG Securities EMEA plc acquired a new stake in shares of Paycom Software during the 2nd quarter worth approximately $33,000. Finally, Palisade Asset Management LLC bought a new stake in shares of Paycom Software during the third quarter worth approximately $33,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of Paycom Software stock opened at $169.23 on Thursday. The stock's fifty day simple moving average is $138.02 and its 200 day simple moving average is $133.21. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $8.06 billion, a PE ratio of 19.56, a PEG ratio of 1.37 and a beta of 0.80. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $248.95.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The company had revenue of $571.80 million during the quarter, compared to the consensus estimate of $564.37 million. During the same period in the prior year, the company earned $2.80 earnings per share. The company's revenue for the quarter was up 7.8% compared to the same quarter last year. On average, research analysts predict that Paycom Software, Inc. will post 9.37 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were given a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software's payout ratio is currently 17.34%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Zacks Research raised shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. Citigroup upped their price objective on Paycom Software from $120.00 to $136.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Weiss Ratings raised Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. BTIG Research boosted their target price on Paycom Software from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Mizuho upped their price target on Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $159.75.

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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