Fundsmith Reduces $41M in Paycom Software, Inc. ($PAYC)

Fundsmith reduced its position in Paycom Software by 58%, according to a recent 13F filing.

Written by Trueearnings · Published Jun 14, 2026, 4:53 AM EDT

Key Points

Fundsmith cut its Paycom Software stake by 58%, selling 303,976 shares and ending with 219,457 shares valued at $29.5 million.
Paycom shares trade around $134.52 with a market cap of $6.27 billion and a P/E ratio of 15.57.
Insider transactions include sales by executives and recent analyst ratings with varied price targets.

Fundsmith has significantly reduced its stake in Paycom Software, Inc. (NYSE:PAYC). According to its latest 13F filing with the SEC, Fundsmith cut its holdings by 303,976 shares, a 58% reduction, leaving it with 219,457 shares valued at approximately $29.5 million as of the reporting period.

What Changed in Fundsmith's Paycom Software Position

Fundsmith's recent filing shows a substantial decrease in its investment in Paycom Software. The fund previously held 523,433 shares, but after selling 303,976 shares, its current position stands at 219,457 shares. This move represents a 58% reduction in its holdings, indicating a strategic shift in its portfolio management.

Other Institutional Activity in Paycom Software

Several other institutional investors have also adjusted their positions in Paycom Software. BlackRock, Inc. increased its holdings by 2,111,515 shares, bringing its total to 6,041,109 shares worth about $734.2 million. Harris Associates L.P. added 48,015 shares, now holding 3,257,774 shares valued at $395.9 million. Vanguard Portfolio Management LLC and Vanguard Capital Management LLC both initiated positions, each with over 2 million shares. Meanwhile, Two Sigma Investments, LP significantly boosted its stake by 1,453,710 shares, ending with 1,747,666 shares valued at $212.4 million. In contrast, State Street Corp reduced its holdings by 438,597 shares, leaving it with 1,726,949 shares valued at $209.9 million.

Paycom Software Stock Snapshot

Shares of Paycom Software are currently trading around $134.52. The company has a market capitalization of about $6.27 billion and a P/E ratio of 15.57. The stock's 52-week range spans from a low of $104.90 to a high of $248.95, with a 50-day moving average of $131.40 and a 200-day moving average of $157.37. Paycom has a beta of 0.787, indicating lower volatility compared to the overall market.

Recent Earnings

Paycom Software reported revenue of approximately $2.09 billion, reflecting a growth rate of 7.8%. The company achieved a net margin of 22.44% and a return on equity of 37.15%. Its earnings per share (EPS) came in at $8.64. The next earnings report is expected on August 5, 2026.

Dividend

Paycom Software offers a dividend with an annual rate of $1.50, yielding 1.12%. The payout ratio stands at 17.36%, indicating a conservative approach to dividend distribution.

Insider Buying and Selling at Paycom Software, Inc.

Recent insider transactions at Paycom Software include sales by Chief Operating Officer Randall Peck, who sold 2,500 shares at $140.50 on May 18, 2026. Earlier, on May 10, 2026, President and Chief Client Officer Terrell Shane Hadlock sold 2,728 shares at $138.44, and Randall Peck sold an additional 336 shares at the same price. Notably, on May 4, 2026, insiders Sharen Turney, Henry Duques, and Joseph Leo Binz each bought 1,890 shares, although the purchase price was not disclosed.

Analysts Set New Price Targets

On May 7, 2026, several analysts reaffirmed their ratings for Paycom Software. Citigroup maintained a 'hold' rating with a price target of $136. TD Cowen and BTIG both reiterated 'buy' ratings with targets of $154 and $160, respectively. Barclays and Mizuho kept 'hold' ratings with targets of $148 and $130.

About Paycom Software, Inc.

Paycom Software, Inc. is a provider of cloud-based human capital management solutions, offering software-as-a-service for small to mid-sized businesses in the United States. Headquartered in Oklahoma City, Oklahoma, and led by CEO Chad R. Richison, Paycom employs around 5,770 people. The company's comprehensive platform helps manage the employment life cycle from recruitment to retirement, featuring tools for payroll, talent management, and compliance.

Bottom Line

Fundsmith's decision to trim its Paycom Software stake by more than half suggests a reevaluation of its investment strategy. As with all 13F filings, this report provides a historical snapshot of Fundsmith's holdings as of the reporting period, and may not reflect its current position. Investors and analysts continue to watch Paycom's performance closely, given its role in the competitive technology sector.