Sather Financial Increases Stake in Paycom Software Amid Declining Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Increased Stake: Sather Financial Group disclosed in an SEC filing on January 26, 2026, that it purchased an additional 18,035 shares of Paycom Software for $3.20 million during Q4, although the total position value decreased by $9.32 million due to share price fluctuations, indicating market uncertainty.
- Ownership Proportion Change: As of December 31, 2025, Sather's stake in Paycom rose to 2.3%, representing a significant portion of its $1.86 billion reportable U.S. equity AUM, reflecting continued confidence in the company.
- Market Performance: As of January 23, 2026, Paycom's shares were priced at $152.29, down 25.3% over the past year and underperforming the S&P 500 by 38.3 percentage points, highlighting the growth challenges faced by the company.
- Valuation Attractiveness: Despite Paycom's stock price declining over 60% in the past five years, its current P/E ratio of about 19 is significantly lower than the pandemic peak of 150, potentially offering a more attractive entry point for long-term investors.
Analyst Views on PAYC
Wall Street analysts forecast PAYC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYC is 201.82 USD with a low forecast of 165.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
11 Hold
0 Sell
Hold
Current: 152.290
Low
165.00
Averages
201.82
High
245.00
Current: 152.290
Low
165.00
Averages
201.82
High
245.00
About PAYC
Paycom Software, Inc. is a provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as software-as-a-service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Its solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications. The Company's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
