In a surprising turn of events, Nisa Investment Advisors LLC has reported a significant increase in its position with Paycom Software, Inc. (NYSE:PAYC) during the first quarter of this year. According to their recent 13F filing with the Securities and Exchange Commission (SEC), Nisa Investment Advisors LLC now owns 11,094 shares of Paycom Software, representing a 19.0% increase after purchasing an additional 1,775 shares.
This newfound interest in Paycom Software has captured the attention of analysts and investors alike. With such a substantial increase in holdings, Nisa Investment Advisors LLC’s stake in Paycom Software is estimated to be worth approximately $3,373,000 as reflected in its most recent filing with the SEC.
Despite this surge in investment, there are still many questions surrounding Paycom Software’s financial performance. On July 28, 2023, Paycom Software announced its earnings results for the quarter ended May 2nd. The software maker reported an impressive $2.06 earnings per share for the quarter, surpassing the consensus estimate by $0.06.
Moreover, the company generated revenue of $451.64 million during this period, slightly exceeding analyst estimates of $444.23 million. These favorable earnings and revenue figures have undoubtedly bolstered investor confidence in Paycom Software.
Additionally, Paycom Software showcased robust financial metrics during this quarter. The company achieved a net margin of 20.96%, reflecting its ability to efficiently convert sales into profits. Furthermore, it demonstrated a remarkable return on equity (ROE) of 26.29%, indicating its strong performance relative to shareholder investments.
This positive news regarding revenues and profitability has prompted sell-side analysts to revise their outlook on PAYC shares. Notably, Credit Suisse Group reduced their price objective for Paycom Software from $430.00 to $375.00 following their research report on May 3rd.
Meanwhile, DA Davidson upgraded their rating on Paycom Software from “neutral” to “buy,” setting a price objective of $350.00 for the company in their research report on March 30th. This upgrade reflects a revised valuation and signifies potential growth prospects for Paycom Software.
Conversely, Deutsche Bank Aktiengesellschaft reduced its price objective on PAYC shares from $400.00 to $370.00 in their May 3rd research report. Piper Sandler also revised their target price downwards, from $417.00 to $399.00, indicating some caution regarding Paycom Software’s future performance.
To add more complexity to the mix, StockNews.com downgraded Paycom Software from a “buy” rating to a “hold” rating in their June 9th research report. These diverse opinions reflect the varying interpretations of market analysts and underscore the perplexity surrounding Paycom Software’s outlook.
However, despite these differing views, Bloomberg data indicates that Paycom Software currently holds an average rating of “Moderate Buy” with eleven analysts giving it a buy rating, three suggesting a hold rating, and only one analyst deeming it as sell-worthy. The consensus target price for PAYC shares is estimated to be around $377.29.
As we move forward into an uncertain future, it remains unclear how Paycom Software will perform for the rest of this year and beyond. While Nisa Investment Advisors LLC has exhibited confidence in its recent increase in holdings, market observers must continue monitoring the company’s performance as it navigates challenges within its industry.
In conclusion, Nisa Investment Advisors LLC’s substantial increase in position with Paycom Software has sparked intrigue among investors and analysts alike. With promising earnings results and favorable financial metrics shaping up for this software maker, PAYC shares are under intense scrutiny and have received mixed recommendations from various research reports. As time progresses and information unfolds, the enigma around Paycom Software’s future performance will continue to captivate the market.
Paycom Software, Inc.
PAYC
Strong Buy
Updated on: 03/12/2023
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, Inc. Attracts Investor Interest and Analyst Attention with Strong Financial Position and Growth Potential
Paycom Software, Inc., a leading provider of comprehensive HR software solutions, has recently attracted the attention of several notable investors. Among them is Compagnie Lombard Odier SCmA, which acquired a new position in Paycom Software during the fourth quarter of last year. The purchase was valued at $26,000, indicating strong belief in the company’s future prospects.
Fuller & Thaler Asset Management Inc. also joined the ranks of Paycom Software shareholders during the fourth quarter of last year with a similar investment worth $26,000. This suggests that multiple investors recognized the potential growth opportunities offered by Paycom Software.
Another investor that demonstrated confidence in Paycom Software is Ridgewood Investments LLC. This firm acquired shares in the software maker during the first quarter of this year at a value of $26,000. Massmutual Trust Co. FSB ADV took its stake even further when it increased its investment by 466.7% during the same period, now holding 102 shares valued at $31,000.
During early 2023, Sonnipe Ltd made a bold move and acquired a new position in Paycom Software worth $38,000. These investments from various institutional investors and hedge funds collectively result in their ownership of approximately 74.73% of the company’s stock.
On July 28th, 2023, shares of PAYC opened at $361.06. The company boasts a healthy current ratio and quick ratio of 1.19 each – indicating its ability to meet short-term obligations promptly with available assets – and a commendably low debt-to-equity ratio.
Paycom Software has experienced significant fluctuations between its respective high and low points over both one-year periods: from its lowest point at $262.11 to its highest point at $402.78 for each respective twelve-month timeframe monitored through July 28th.
Market analysts have provided their insights on Paycom Software, shedding light on their value expectations. Credit Suisse Group, in a research report released on May 3rd, 2023, reduced its price objective from $430.00 to $375.00. Similarly, Deutsche Bank Aktiengesellschaft lowered their price objective on the company’s shares from $400.00 to $370.00 the same day.
Despite reductions in target prices by some analysts, there have also been positive adjustments to Paycom Software’s rating by other research firms. DA Davidson upgraded the stock from a “neutral” to a “buy” rating on March 30th and set a price objective of $350.00.
In terms of dividends, Paycom Software announced a quarterly dividend that was paid on June 12th, 2023. Shareholders of record as of May 30th received a dividend of $0.375 per share. This equates to an annualized dividend payout ratio of 28.14% and a yield of 0.42%.
In recent news regarding insider trading activity, Director Jason D. Clark sold 430 shares of Paycom Software stock at an average price of $278.99 per share on May 25th, amounting to a total transaction value of $119,965.70.
Overall, Paycom Software has attracted attention from both institutional investors and market analysts due to its strong financial position and growth potential in the HR software industry. While certain analysts have revised their target prices downward amidst market fluctuations, others maintain favorable ratings and anticipate further growth for the company in the coming months ahead
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