Connor Clark & Lunn Investment Management Ltd. Makes New $4.19 Million Investment in Paycom Software, Inc. $PAYC

Connor Clark & Lunn Investment Management Ltd. bought a new stake in Paycom Software, Inc. (NYSE:PAYC) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 18,109 shares of the software maker’s stock, valued at approximately $4,190,000.

Other large investors have also modified their holdings of the company. Baillie Gifford & Co. grew its position in Paycom Software by 1,918.4% in the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker’s stock valued at $346,180,000 after buying an additional 1,505,990 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Paycom Software in the 1st quarter worth $114,440,000. Jennison Associates LLC purchased a new stake in shares of Paycom Software in the second quarter valued at about $49,853,000. Nuveen LLC acquired a new position in shares of Paycom Software during the first quarter worth about $26,177,000. Finally, Robeco Institutional Asset Management B.V. increased its stake in shares of Paycom Software by 322.7% during the second quarter. Robeco Institutional Asset Management B.V. now owns 122,394 shares of the software maker’s stock worth $28,322,000 after acquiring an additional 93,440 shares during the period. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Insider Activity at Paycom Software

In related news, insider Bradley Scott Smith sold 1,500 shares of the stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the sale, the insider directly owned 24,533 shares of the company’s stock, valued at approximately $5,477,482.91. This represents a 5.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 10.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on PAYC shares. Weiss Ratings restated a “hold (c)” rating on shares of Paycom Software in a research report on Wednesday, October 8th. TD Cowen cut their target price on Paycom Software from $258.00 to $200.00 and set a “buy” rating for the company in a research note on Thursday, November 6th. JPMorgan Chase & Co. reduced their price target on Paycom Software from $235.00 to $220.00 and set a “neutral” rating for the company in a report on Thursday, November 6th. Barclays dropped their price objective on Paycom Software from $225.00 to $210.00 and set an “equal weight” rating on the stock in a report on Thursday, November 6th. Finally, Cantor Fitzgerald upgraded Paycom Software to a “hold” rating in a research report on Thursday, September 11th. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Paycom Software has a consensus rating of “Hold” and an average price target of $225.77.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $164.43 on Friday. The firm has a market capitalization of $9.25 billion, a price-to-earnings ratio of 20.45, a price-to-earnings-growth ratio of 1.83 and a beta of 0.88. The business’s 50 day simple moving average is $201.38 and its 200-day simple moving average is $224.68. Paycom Software, Inc. has a 12 month low of $156.50 and a 12 month high of $267.76.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings data on Wednesday, November 5th. The software maker reported $1.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.96 by ($0.02). The firm had revenue of $493.30 million for the quarter, compared to analyst estimates of $492.62 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.67 earnings per share. Paycom Software has set its FY 2025 guidance at EPS. On average, equities analysts anticipate that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 8th. Investors of record on Monday, November 24th will be given a $0.375 dividend. The ex-dividend date is Monday, November 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.9%. Paycom Software’s payout ratio is currently 18.66%.

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.