Tidal Investments LLC Boosts Holdings in Paycom Software, Inc. $PAYC

Key Points

• Tidal Investments increased its Paycom Software stake by 187.6% in the second quarter, bringing its holdings to 14,543 shares valued at approximately $1.83 million. Institutional investors collectively own 87.77% of PAYC.
• Paycom reported quarterly earnings of $2.78 per share, exceeding estimates of $2.38, while revenue rose 9.8% year over year to $531.2 million.
• Analyst sentiment remains mixed: UBS and KeyCorp raised their price targets and maintained bullish ratings, but the overall consensus is “Hold” with an average target of $214.23, below the stock’s reported $225.88 price.

Tidal Investments LLC raised its stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 187.6% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,543 shares of the software maker's stock after buying an additional 9,487 shares during the quarter. Tidal Investments LLC's holdings in Paycom Software were worth $1,828,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Archford Capital Strategies LLC lifted its stake in Paycom Software by 1.1% in the 2nd quarter. Archford Capital Strategies LLC now owns 4,684 shares of the software maker's stock worth $589,000 after purchasing an additional 49 shares in the last quarter. WINTON GROUP Ltd grew its position in shares of Paycom Software by 311.7% during the second quarter. WINTON GROUP Ltd now owns 46,197 shares of the software maker's stock valued at $5,806,000 after purchasing an additional 34,976 shares in the last quarter. Engineers Gate Manager LP increased its holdings in shares of Paycom Software by 52.4% in the second quarter. Engineers Gate Manager LP now owns 80,419 shares of the software maker's stock worth $10,107,000 after purchasing an additional 27,644 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Paycom Software in the second quarter worth about $244,000. Finally, NewEdge Advisors LLC lifted its position in shares of Paycom Software by 20.9% in the second quarter. NewEdge Advisors LLC now owns 11,289 shares of the software maker's stock worth $1,419,000 after buying an additional 1,949 shares in the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Trading Down 0.8%

PAYC opened at $225.88 on Friday. The firm has a market cap of $10.18 billion, a P/E ratio of 24.00, a P/E/G ratio of 1.26 and a beta of 0.78. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $244.98. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. The stock has a 50-day moving average of $197.91 and a 200 day moving average of $154.01.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million for the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The firm's revenue for the quarter was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.06 earnings per share. As a group, research analysts forecast that Paycom Software, Inc. will post 10.65 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were given a dividend of $0.375 per share. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software's payout ratio is currently 15.94%.

Insiders Place Their Bets

In related news, insider Shane Hadlock sold 241 shares of the firm's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the sale, the insider directly owned 69,911 shares in the company, valued at $16,783,533.77. This trade represents a 0.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 13.20% of the company's stock.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. UBS Group raised their price target on Paycom Software from $205.00 to $285.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. KeyCorp upped their price objective on Paycom Software from $195.00 to $270.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Wall Street Zen downgraded Paycom Software from a "buy" rating to a "hold" rating in a research report on Sunday, September 6th. BMO Capital Markets raised their target price on shares of Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a report on Thursday, August 6th. Finally, Stifel Nicolaus raised their target price on shares of Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a report on Thursday, August 6th. One 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 company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $214.23.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.

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