Truist Financial Corp Cuts Stake in Paycom Software, Inc. $PAYC

Key Points

• Truist Financial Corp reduced its stake in Paycom Software by 38.4%, bringing its holdings down to 6,263 shares valued at approximately $1.45 million.
• Paycom Software reported a quarterly EPS of $2.06, exceeding analyst estimates, with revenue of $483.6 million, a 10.5% increase from the previous year.
• The company announced a quarterly dividend of $0.375 per share, reflecting an annualized return of 0.8% with a payout ratio of 20.30%.

Truist Financial Corp lessened its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 38.4% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,263 shares of the software maker's stock after selling 3,907 shares during the quarter. Truist Financial Corp's holdings in Paycom Software were worth $1,449,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in PAYC. Brighton Jones LLC purchased a new position in Paycom Software during the 4th quarter valued at approximately $638,000. Park Avenue Securities LLC grew its holdings in Paycom Software by 6.4% during the 1st quarter. Park Avenue Securities LLC now owns 3,138 shares of the software maker's stock valued at $686,000 after buying an additional 188 shares in the last quarter. GAMMA Investing LLC grew its holdings in Paycom Software by 54.5% during the 1st quarter. GAMMA Investing LLC now owns 904 shares of the software maker's stock valued at $198,000 after buying an additional 319 shares in the last quarter. SG Americas Securities LLC grew its holdings in Paycom Software by 57.1% during the 1st quarter. SG Americas Securities LLC now owns 2,685 shares of the software maker's stock valued at $587,000 after buying an additional 976 shares in the last quarter. Finally, Handelsbanken Fonder AB grew its holdings in Paycom Software by 8.5% during the 1st quarter. Handelsbanken Fonder AB now owns 14,000 shares of the software maker's stock valued at $3,059,000 after buying an additional 1,100 shares in the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of PAYC stock opened at $199.87 on Friday. Paycom Software, Inc. has a 52-week low of $161.24 and a 52-week high of $267.76. The firm has a market capitalization of $11.57 billion, a P/E ratio of 27.05, a P/E/G ratio of 2.19 and a beta of 0.82. The stock has a 50 day moving average price of $218.98 and a 200 day moving average price of $228.99.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.78 by $0.28. The firm had revenue of $483.60 million during the quarter, compared to analyst estimates of $472.00 million. Paycom Software had a return on equity of 25.40% and a net margin of 21.22%.Paycom Software's quarterly revenue was up 10.5% compared to the same quarter last year. During the same period last year, the company earned $1.62 EPS. As a group, sell-side analysts forecast that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were given a dividend of $0.375 per share. The ex-dividend date of this dividend was Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.8%. Paycom Software's payout ratio is 20.30%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on PAYC shares. Barclays raised their price target on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. TD Cowen raised Paycom Software from a "hold" rating to a "buy" rating and raised their price objective for the company from $246.00 to $258.00 in a research note on Monday, September 22nd. UBS Group lowered their price objective on Paycom Software from $310.00 to $285.00 and set a "buy" rating for the company in a research note on Wednesday, September 17th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Paycom Software in a research note on Wednesday. Finally, JPMorgan Chase & Co. raised their price objective on Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Four investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Paycom Software currently has a consensus rating of "Hold" and a consensus target price of $241.77.

Insiders Place Their Bets

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction on Friday, September 12th. The stock was sold at an average price of $223.27, for a total transaction of $334,905.00. Following the completion of the sale, the insider directly owned 24,533 shares of the company's stock, valued at $5,477,482.91. The trade was a 5.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 10.90% of the stock is currently owned by company insiders.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

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