Nordea Investment Management AB, a Swedish asset management firm, has increased its stake in Paycom Software, Inc. during the second quarter of this year. According to their most recent disclosure with the Securities and Exchange Commission (SEC), Nordea now owns 240,333 shares of the software maker’s stock. This represents a 95.0% increase from their previous holdings after the purchase of an additional 117,116 shares.
As per Nordea’s SEC filing, their stake in Paycom Software is currently valued at $76,039,000. However, it is important to note that this value is subject to change based on market fluctuations. With this level of investment, Nordea now holds approximately 0.40% ownership of Paycom Software.
Paycom Software recently released its quarterly earnings results for the period ending on August 1st. The company reported earnings per share (EPS) of $1.01 for the quarter, which fell short of analysts’ consensus estimates of $1.23 by a margin of ($0.22). Despite this miss, Paycom Software generated revenue of $401.14 million during the quarter, surpassing analysts’ expectations of $398.20 million.
The company also demonstrated solid profitability metrics during this period with a net margin standing at 20.28% and a return on equity reaching 24.93%. These figures indicate that Paycom Software managed its resources efficiently and achieved substantial returns for its shareholders.
Equities research analysts have recently provided their opinions on Paycom Software as well. Needham & Company LLC reiterated a “buy” rating with a price target set at $450.00 per share in their research report dated August 2nd. Likewise, Oppenheimer maintained an “outperform” rating and set a price target of $400.00 per share.
Credit Suisse Group increased their price target on Paycom Software from $375.00 to $395.00 and gave the stock an “outperform” rating. Stifel Nicolaus also raised their price target from $380.00 to $400.00, asserting a “buy” rating on the stock. On the other hand, Robert W. Baird lowered their price target from $443.00 to $427.00 but maintained an “outperform” rating.
In summary, Paycom Software, Inc. has undergone a notable increase in investment by Nordea Investment Management AB during the second quarter of 2023. The software maker’s recent earnings results reflected positive revenue figures despite falling short on EPS compared to analysts’ estimates. Overall, equities research analysts appear to be optimistic about Paycom Software’s future prospects as evidenced by their favorable ratings and price targets.
Please note that all information in this article is accurate as of September 17th, 2023 and may be subject to change in the future based on new developments or disclosures from relevant sources.
Paycom Software, Inc.
PAYC
Strong Buy
Updated on: 25/09/2023
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, Inc. Positioned for Continued Success in Payroll and HR Solutions Industry
Paycom Software, Inc. is a leading provider of comprehensive payroll and HR solutions for businesses of all sizes. The company’s stock opened at $277.92 on Friday, with a 50-day simple moving average of $311.76 and a 200-day simple moving average of $299.55. With a market capitalization of $16.81 billion, Paycom Software has established itself as a prominent player in the industry.
One interesting aspect of Paycom Software is its strong support from institutional investors and hedge funds. Several major investors have recently modified their holdings of PAYC, signaling growing confidence in the company’s future prospects. Compagnie Lombard Odier SCmA, Fuller & Thaler Asset Management Inc., Ridgewood Investments LLC, HHM Wealth Advisors LLC, and KB Financial Partners LLC are among the institutional investors that have acquired new stakes in Paycom Software or increased their current holdings.
These investments highlight the perceived value and potential growth opportunity offered by Paycom Software. As businesses increasingly recognize the need for efficient payroll and HR solutions, Paycom Software stands poised to capitalize on this demand.
Equity analysts have also offered positive assessments of Paycom Software’s outlook. Needham & Company LLC maintains a “buy” rating with a price target of $450.00 on the company’s stock, while Oppenheimer rates it as “outperform” with a price target of $400.00.
Credit Suisse Group recently raised their price target on Paycom Software from $375.00 to $395.00, affirming an “outperform” rating based on positive market conditions and expected earnings growth for the company.
Stifel Nicolaus shares optimism regarding Paycom Software’s future performance by boosting its price target from $380.00 to $400.00 and labeling the stock as a “buy” option.
However, Robert W. Baird was more conservative in its assessment by lowering the price target to $427.00 from the previous $443.00, while still maintaining an “outperform” rating on the stock.
Overall, consensus data from Bloomberg.com reveals a “Moderate Buy” rating for Paycom Software, with a consensus price target of $384.53, indicating positive sentiment from analysts and experts in the field.
In terms of dividends, Paycom Software recently declared a quarterly dividend of $0.375 per share. Investors who were recorded as shareholders on August 28th received this dividend on September 11th. This represents an annualized dividend of $1.50 and a yield of 0.54%. With a current dividend payout ratio (DPR) of 27.52%, Paycom Software demonstrates its commitment to returning value to shareholders.
Notable insider transactions within the company have also occurred recently. Director Jason D. Clark sold 130 shares of Paycom Software stock on September 8th at an average price of $287.36, totaling $37,356.80 in value. Following this transaction, Clark now holds 4,970 shares in the company valued at approximately $1,428,179.20.
Additionally, EVP Christopher Gene Thomas sold 320 shares on August 10th at an average price of $290.05, resulting in a total transaction value of $92,816.00.
It’s worth noting that company insiders own around 14.50% of Paycom Software’s stock—a significant percentage that further emphasizes their confidence in the company’s future growth potential.
These developments showcase the steady progress made by Paycom Software in establishing itself as a trusted provider of payroll and HR solutions. With strong support from institutional investors, positive ratings from equity analysts, regular dividends for shareholders, and active participation from insiders within the company—Paycom Software appears well-positioned for continued success in the industry.
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