Vanguard Group Inc. Sells 213,399 Shares of Paycom Software, Inc. $PAYC

Key Points

• Vanguard Group trimmed its stake in Paycom by 3.7%, selling 213,399 shares and finishing the quarter with 5,589,389 shares (about 9.93% of the company) valued at roughly $890.7 million.
• Analysts are largely cautious with a consensus rating of Hold and a $168.79 average target, though recent price-target revisions have been mixed (e.g., Cantor Fitzgerald to $135, Jefferies to $130, Barclays to $150).
• Paycom has a market cap of $6.29B and a P/E of 16.3; it slightly beat quarterly EPS and revenue estimates (revenue +10.2% y/y) and pays a quarterly dividend of $0.375 (about a 1.1% yield).

Vanguard Group Inc. lowered its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 3.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 5,589,389 shares of the software maker's stock after selling 213,399 shares during the quarter. Vanguard Group Inc. owned about 9.93% of Paycom Software worth $890,725,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. CYBER HORNET ETFs LLC bought a new position in shares of Paycom Software in the second quarter worth $29,000. Caitlin John LLC bought a new position in shares of Paycom Software in the third quarter worth $29,000. MUFG Securities EMEA plc bought a new position in shares of Paycom Software in the second quarter worth $33,000. Steigerwald Gordon & Koch Inc. bought a new position in shares of Paycom Software in the third quarter worth $31,000. Finally, True Wealth Design LLC increased its holdings in shares of Paycom Software by 946.7% in the fourth quarter. True Wealth Design LLC now owns 157 shares of the software maker's stock worth $25,000 after purchasing an additional 142 shares during the period. Institutional investors own 87.77% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Cantor Fitzgerald upped their price target on shares of Paycom Software from $115.00 to $135.00 and gave the stock a "neutral" rating in a report on Friday, March 6th. Jefferies Financial Group decreased their price target on shares of Paycom Software from $190.00 to $130.00 and set a "hold" rating on the stock in a report on Thursday, February 12th. Weiss Ratings cut shares of Paycom Software from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, February 3rd. Citigroup decreased their price target on shares of Paycom Software from $185.00 to $128.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. Finally, Barclays upped their price target on shares of Paycom Software from $140.00 to $150.00 and gave the stock an "equal weight" rating in a report on Friday, March 6th. Five analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Paycom Software currently has an average rating of "Hold" and a consensus target price of $168.79.

Paycom Software Stock Up 4.0%

PAYC opened at $131.85 on Friday. The stock has a market cap of $6.29 billion, a PE ratio of 16.30, a P/E/G ratio of 1.39 and a beta of 0.77. Paycom Software, Inc. has a 52 week low of $104.90 and a 52 week high of $267.76. The business's fifty day simple moving average is $124.88 and its 200 day simple moving average is $148.00.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, beating analysts' consensus estimates of $2.44 by $0.01. The business had revenue of $544.30 million for the quarter, compared to analysts' expectations of $542.79 million. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The firm's revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.32 earnings per share. As a group, equities analysts anticipate that Paycom Software, Inc. will post 8.59 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Stockholders of record on Monday, March 9th were paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, March 9th. Paycom Software's dividend payout ratio (DPR) is 18.54%.

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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