August 8, 2023 – Assetmark Inc., a renowned investment management firm, has significantly increased its stake in Paycom Software, Inc. (NYSE:PAYC) during the first quarter of this year. According to its recent filing with the Securities and Exchange Commission, Assetmark Inc. now owns 15,538 shares of the software maker’s stock, an increase of 403.7%. The firm acquired an additional 12,453 shares during the quarter, with a reported value of $4,724,000 at the end of the period.
This notable increase in Assetmark Inc.’s holdings in Paycom Software demonstrates their confidence in the company’s prospects and its potential for future growth. It signifies a strong endorsement from a respected player in the investment management industry.
Several equities analysts have recently offered their assessments on Paycom Software’s stock. William Blair initiated coverage on the company and provided it with an “outperform” rating on June 28th. BMO Capital Markets also weighed in by raising their price target from $340.00 to $356.00 and assigning a “market perform” rating on August 2nd. In contrast, Deutsche Bank Aktiengesellschaft reduced their price objective from $400.00 to $370.00 back on May 3rd.
On August 2nd, Piper Sandler reiterated an “overweight” rating and established a $399.00 price target for Paycom Software’s shares. Stifel Nicolaus then went even further by increasing their target price to $400.00 and labeling the company as a “buy” rating that same day.
Analysts’ opinions may differ slightly regarding Paycom Software’s stock; however, there is overall consensus about its positive prospects in the market based on available data from Bloomberg. The average rating for Paycom Software is currently noted as “Moderate Buy,” indicating market optimism surrounding its future growth potential. Furthermore, the consensus price target for the stock stands at $384.53.
As of today, Paycom Software’s shares opened at $293.11, demonstrating its resilience in what has been a challenging market environment. The company’s impressive market capitalization of $17.67 billion reflects investors’ confidence in its offerings and value proposition.
Paycom Software boasts a price-to-earnings ratio of 53.78 along with a PEG ratio of 2.00 – reflecting its growth potential relative to its current valuation. With a beta of 1.44, the stock is considered to have a higher level of volatility compared to the broader market. However, this can also present opportunities for investors seeking potentially higher returns.
Examining the company’s financial health, Paycom Software maintains a debt-to-equity ratio of 0.02, indicating sound financial management and limited exposure to debt risk. Additionally, it possesses strong liquidity levels with both a current ratio and quick ratio standing at 1.24.
Looking at Paycom Software’s performance over the past year, the stock experienced a low of $262.11 and reached a high point of $402.78 – displaying substantial upward momentum during this period.
The stock has demonstrated stability with its 50-day moving average currently standing at $324.40 while maintaining an upward trajectory despite short-term fluctuations in market conditions and investor sentiment. Similarly, the 200-day moving average stands at $305.36 – further reinforcing investors’ confidence in its growth potential.
In conclusion, Assetmark Inc.’s significant increase in holdings of Paycom Software speaks to their belief in the company’s future success and growth prospects within the software industry sector despite varying opinions expressed by equities analysts on Wall Street.
Paycom Software’s consistent positive momentum in recent times indicates robust underlying fundamentals accompanied by strong market demand for its offerings as businesses increasingly embrace digital transformation strategies aligned with modern HR and payroll solutions. As the organization continues to innovate, gain market share, and meet evolving customer needs, its stock could provide investors with attractive returns.
Paycom Software, Inc.
PAYC
Strong Buy
Updated on: 02/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Paycom Software’s Institutional Ownership Surges and Promising Dividend Outlook
Paycom Software’s Growing Institutional Ownership and Dividend Outlook
Date: August 8, 2023
In recent years, Paycom Software (PAYC) has witnessed a notable increase in the number of institutional investors and hedge funds buying and selling shares of the company. The substantial interest from well-known investment firms speaks volumes about the software maker’s potential for growth and highlights investor confidence in its future prospects. This article will explore some of the key developments surrounding Paycom Software’s institutional ownership and dividend payout ratio.
Growing Institutional Ownership:
Leading investment management companies such as Vanguard Group Inc., State Street Corp, Wellington Management Group LLP, Geode Capital Management LLC, and Morgan Stanley have all increased their holdings in Paycom Software over specific periods. These significant investments demonstrate a strong belief in the company’s long-term growth potential.
Vanguard Group Inc., one of the world’s largest investment companies with trillions of dollars in assets under management, boosted its holdings in Paycom Software by 1.3% during the first quarter of this year. This addition amounted to an acquisition of 73,414 additional shares, further consolidating Vanguard’s position as a significant shareholder of the software maker.
Similarly, State Street Corp raised its stake by 1.3% during the third quarter of last year, acquiring an additional 23,413 shares. Meanwhile, Wellington Management Group LLP raised its stake by 8.7% during the first quarter to acquire an impressive 108,505 more shares. Moreover, Geode Capital Management LLC experienced a positive growth trajectory with a stake increase of 2.6%, which equated to an additional 27,682 shares purchased during the fourth quarter.
The most notable jump among institutional investors was seen with Morgan Stanley which increased its position in Paycom Software by a staggering 147.5% during the fourth quarter of last year. The acquisition resulted in Morgan Stanley now owning over 1 million shares of the software maker’s stock, solidifying their belief in its future success.
Paycom Software Insiders:
Additionally, Paycom Software saw Director Jason D. Clark sell 430 shares on May 25th at an average price of $278.99 per share, totaling $119,965.70. The filing with the Securities & Exchange Commission revealed that after the sale, Clark owns 5,100 shares valued at $1,422,849.
Dividend Outlook:
In recent news, Paycom Software announced a quarterly dividend to be paid out on September 11th this year. Shareholders of record as of August 28th will receive a dividend of $0.375 per share. This represents an annualized dividend payout ratio of approximately $1.50 and yields a return of 0.51%. The announcement not only signifies the company’s commitment to rewarding its shareholders but also indicates confidence in its financial stability and growth potential.
Conclusion:
As evidenced by the increasing interests from notable institutional investors and hedge funds, Paycom Software is garnering attention as an attractive investment opportunity in the software industry. With investments from Vanguard Group Inc., State Street Corp, Wellington Management Group LLP, Geode Capital Management LLC, and Morgan Stanley, it is clear that these market participants see significant potential for growth within the company. Moreover, Paycom Software’s decision to declare a quarterly dividend showcases its commitment to returning value to shareholders while instilling confidence in its overall financial strength. As investors eagerly await the next phase of Paycom Software’s journey, its progress signals exciting possibilities for both current and prospective stakeholders.
References:
– Retrieved August 8, 2023.
(Note: The figures mentioned in this article are not actual or up-to-date figures but are used for descriptive purposes only.)
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