Investment Manager Doubles Down on Paycom, Acquires $95 Million Worth of Shares

Core Insights - Reinhart Partners disclosed a significant purchase of Paycom shares, acquiring 537,726 shares valued at approximately $95.28 million based on quarterly average pricing [1][2] Company Overview - Paycom provides cloud-based human capital management (HCM) software through a SaaS model, offering comprehensive workforce management solutions for small to mid-sized businesses in the United States [5][7] - The company's revenue for the trailing twelve months (TTM) is $2.00 billion, with a net income of $453.20 million and a dividend yield of 1.3% [4] Recent Performance - As of February 10, 2026, Paycom shares were priced at $124.94, reflecting a decline of 38.5% over the past year and trailing the S&P 500 by 53.0 percentage points [3] - The value of Reinhart Partners' stake in Paycom increased by $82.74 million compared to the prior period, influenced by both share purchases and market price changes [2] Market Context - Paycom's stock has experienced a significant decline of approximately 70% since 2021, attributed largely to the emergence of artificial intelligence (AI) impacting traditional software products [8] - Revenue growth for Paycom has slowed from 30% in 2021 to under 10% in 2025, raising concerns about the sustainability of its business model in the face of AI advancements [9]