5 Best Tech Stocks To Buy On the Dip

2. Paycom Software, Inc. (NYSE:PAYC)

Number of Hedge Fund Holders: 43   

Decline in Share Price YTD: 33%

Paycom Software, Inc. (NYSE:PAYC) provides cloud-based human capital management solutions. On December 1, investment advisory Barclays maintained an Equal Weight rating on Paycom Software, Inc. (NYSE:PAYC) stock and lowered the price target to $193 from $200. 

At the end of the third quarter of 2023, 43 hedge funds in the database of Insider Monkey held stakes worth $829 million in Paycom Software, Inc. (NYSE:PAYC), compared to 40 in the previous quarter worth $1 billion.

In its Q3 2023 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Paycom Software, Inc. (NYSE:PAYC) was one of them. Here is what the fund said:

“The most significant detractors from the Portfolio’s relative performance in the quarter included Farfetch, Doximity, and Paycom Software, Inc. (NYSE:PAYC).

Paycom, a leading provider of cloud-based human capital management software for small and mid-sized businesses, was another detractor in the period. Despite reporting positive results, the investors seemed concerned about the company’s performance in the year’s second half. As a result, the stock fell by almost 20% on the day of the report. However, the company is committed to investing in its BETI platform to onboard more customers, which may have a short-term negative impact on revenues. But, in the long run, it can benefit the company’s margins. Our positive long-term outlook remains unchanged. We still believe the company has an attractive growth potential in a large addressable market.”