Paycom Software (PAYC) Fell Along with Peers

Core Insights - Oakmark Select Fund outperformed the S&P 500 Index in Q4 2025, returning 8.42% compared to the index's 2.66% [1] - The fund's performance was primarily driven by strong contributions from the communication services and financial sectors, while industrials negatively impacted performance [1] Company Analysis: Paycom Software, Inc. (NYSE:PAYC) - Paycom Software, Inc. is a cloud-based human capital management solution provider with a market capitalization of $8.86 billion [2] - The stock closed at $157.50 per share on January 13, 2026, with a one-month return of -5.67% and a 52-week decline of 23.30% [2] - Paycom was the top detractor for the Oakmark Select Fund during the quarter, experiencing a decline in stock price due to underperformance in the application software sector [3] - Despite recent challenges, the fund believes Paycom has significant growth potential and that its system-of-record software will remain relevant despite advancements in AI [3] - Management's focus on share repurchases is viewed positively, as it is expected to enhance per-share value at the current stock price [3] Hedge Fund Interest - Paycom Software, Inc. was held by 35 hedge fund portfolios at the end of Q3 2025, an increase from 34 in the previous quarter [4] - The company reported total revenues of $493 million in Q3 2025, reflecting a year-over-year increase of 9.1% [4] - While Paycom is recognized for its potential, the analysis suggests that certain AI stocks may offer better upside potential and lower downside risk [4]