United Capital Financial Advisors LLC Makes New $619,000 Investment in Paycom Software, Inc. $PAYC

Key Points

• United Capital Financial Advisors initiated a Paycom Software position by purchasing 4,926 shares valued at approximately $619,000 in the second quarter. Institutional investors collectively own 87.77% of Paycom’s outstanding stock.
• Paycom reported quarterly earnings of $2.78 per share, exceeding estimates by $0.40, while revenue rose 9.8% year over year to $531.2 million. The company also declared a quarterly dividend of $0.375 per share, equivalent to a 0.6% annualized yield.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and a consensus price target of $208.08. Paycom shares opened at $239.06, near their 12-month high of $242.50, while an insider recently sold $612,295 worth of shares.

United Capital Financial Advisors LLC bought a new position in Paycom Software, Inc. (NYSE:PAYC - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The firm bought 4,926 shares of the software maker's stock, valued at approximately $619,000.

Several other hedge funds and other institutional investors also recently modified their holdings of PAYC. Fluent Financial LLC bought a new position in shares of Paycom Software in the 2nd quarter worth approximately $2,439,000. Principal Financial Group Inc. boosted its position in shares of Paycom Software by 290.5% during the first quarter. Principal Financial Group Inc. now owns 243,762 shares of the software maker's stock valued at $29,627,000 after purchasing an additional 181,346 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Paycom Software by 1,151.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 170,854 shares of the software maker's stock valued at $27,227,000 after purchasing an additional 157,201 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Paycom Software by 467.2% during the first quarter. Janus Henderson Group PLC now owns 23,200 shares of the software maker's stock valued at $2,819,000 after purchasing an additional 19,110 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new position in shares of Paycom Software during the fourth quarter valued at approximately $8,376,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Insiders Place Their Bets

In other Paycom Software news, insider Terrell Shane Hadlock sold 2,577 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the transaction, the insider directly owned 70,152 shares of the company's stock, valued at approximately $16,668,115.20. This trade represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 13.20% of the company's stock.

Paycom Software Trading Up 0.2%

NYSE:PAYC opened at $239.06 on Tuesday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $242.50. The company has a market cap of $10.77 billion, a PE ratio of 25.40, a price-to-earnings-growth ratio of 1.32 and a beta of 0.75. The company has a 50 day simple moving average of $173.53 and a two-hundred day simple moving average of $144.39.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, beating the consensus estimate of $2.38 by $0.40. The firm 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 company's revenue was up 9.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.06 EPS. Research analysts forecast that Paycom Software, Inc. will post 10.65 earnings per share for the current year.

Paycom Software Dividend Announcement

The company 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 $0.375 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. Paycom Software's dividend payout ratio is currently 15.94%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on PAYC. JPMorgan Chase & Co. upped their price target on Paycom Software from $140.00 to $264.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 25th. KeyCorp boosted their target price on Paycom Software from $195.00 to $270.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Barclays increased their target price on Paycom Software from $154.00 to $210.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. Citigroup lifted their price target on Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Stifel Nicolaus increased their price objective on shares of Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $208.08.

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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