DSM Capital Partners LLC Cuts Stake in Paycom Software, Inc. (NYSE:PAYC)

DSM Capital Partners LLC reduced its stake in shares of Paycom Software, Inc. (NYSE:PAYC) by 8.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 212,332 shares of the software maker’s stock after selling 19,383 shares during the quarter. Paycom Software comprises approximately 0.7% of DSM Capital Partners LLC’s holdings, making the stock its 25th largest position. DSM Capital Partners LLC owned about 0.35% of Paycom Software worth $43,893,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the stock. HBK Sorce Advisory LLC grew its holdings in shares of Paycom Software by 5.9% in the fourth quarter. HBK Sorce Advisory LLC now owns 986 shares of the software maker’s stock valued at $204,000 after purchasing an additional 55 shares in the last quarter. Renaissance Group LLC grew its holdings in shares of Paycom Software by 1.1% in the third quarter. Renaissance Group LLC now owns 5,391 shares of the software maker’s stock valued at $1,398,000 after purchasing an additional 61 shares in the last quarter. Bouvel Investment Partners LLC grew its holdings in shares of Paycom Software by 1.0% in the fourth quarter. Bouvel Investment Partners LLC now owns 6,431 shares of the software maker’s stock valued at $1,329,000 after purchasing an additional 63 shares in the last quarter. Optas LLC boosted its stake in Paycom Software by 7.0% during the fourth quarter. Optas LLC now owns 998 shares of the software maker’s stock worth $206,000 after buying an additional 65 shares during the period. Finally, Court Place Advisors LLC boosted its stake in Paycom Software by 3.3% during the fourth quarter. Court Place Advisors LLC now owns 2,065 shares of the software maker’s stock worth $427,000 after buying an additional 65 shares during the period. 87.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Paycom Software news, CEO Chad R. Richison sold 1,950 shares of the firm’s stock in a transaction on Thursday, May 23rd. The stock was sold at an average price of $176.95, for a total value of $345,052.50. Following the transaction, the chief executive officer now owns 3,084,158 shares in the company, valued at approximately $545,741,758.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 5,850 shares of company stock worth $1,048,223 in the last quarter. Corporate insiders own 14.50% of the company’s stock.

Analyst Upgrades and Downgrades

PAYC has been the subject of several recent analyst reports. Needham & Company LLC reaffirmed a “hold” rating on shares of Paycom Software in a research note on Thursday, May 2nd. Barclays dropped their price objective on shares of Paycom Software from $193.00 to $184.00 and set an “equal weight” rating for the company in a research note on Thursday, May 2nd. Mizuho dropped their price objective on shares of Paycom Software from $185.00 to $170.00 and set a “neutral” rating for the company in a research note on Monday, May 6th. BMO Capital Markets decreased their target price on Paycom Software from $200.00 to $190.00 and set a “market perform” rating for the company in a research report on Thursday, May 2nd. Finally, JPMorgan Chase & Co. lifted their target price on Paycom Software from $165.00 to $175.00 and gave the stock a “neutral” rating in a research report on Thursday, May 2nd. Seventeen equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $246.31.

Paycom Software Price Performance

NYSE:PAYC traded down $3.38 during trading hours on Friday, reaching $170.68. The company had a trading volume of 759,251 shares, compared to its average volume of 763,989. Paycom Software, Inc. has a 1-year low of $146.15 and a 1-year high of $374.04. The firm has a market cap of $9.92 billion, a PE ratio of 20.79, a price-to-earnings-growth ratio of 2.63 and a beta of 1.17. The business’s 50 day moving average price is $187.37 and its 200-day moving average price is $189.11.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, May 1st. The software maker reported $4.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.96 by $2.29. Paycom Software had a return on equity of 32.84% and a net margin of 26.91%. The firm had revenue of $499.88 million for the quarter, compared to analyst estimates of $495.89 million. On average, analysts expect that Paycom Software, Inc. will post 6.26 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 10th. Stockholders of record on Tuesday, May 28th will be given a dividend of $0.375 per share. The ex-dividend date of this dividend is Friday, May 24th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.88%. Paycom Software’s dividend payout ratio (DPR) is 18.27%.

Paycom Software Company Profile

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.