Is it Still Safe to Acquire Ceridian HCM (CDAY) Shares?

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned Ceridian HCM Holding Inc. (NYSE:CDAY) and explained its insights for the company. Founded in 2013, Ceridian HCM Holding Inc. (NYSE:CDAY) is a Minneapolis, Minnesota-based global human capital management (HCM) software company with a $8.3 billion market capitalization. Ceridian HCM Holding Inc. (NYSE:CDAY) delivered a -47.50% return since the beginning of the year, while its 12-month returns are down by -37.57%. The stock closed at $54.84 per share on May 16, 2022.

Here is what Baron Asset Fund has to say about Ceridian HCM Holding Inc. (NYSE:CDAY) in its Q1 2022 investor letter:

“Shares of Ceridian HCM Holding Inc., a leader in global payroll software, fell as valuations for high-growth technology stocks compressed. We retain conviction in Ceridian’s long-term opportunity. Growth in Ceridian’s flagship Dayforce platform is reaccelerating toward 30% revenue growth, helped by continued market share gains, its ongoing ability to service larger-sized customers, and the broader recovery in employment trends. We expect Ceridian’s growth to be enhanced by its Wallet suite, which allows all employees on Dayforce to request and receive their wages as soon as they are earned (not just at the end of a typical two-week pay cycle) at no cost to employer or employee. We think this feature has the potential to revolutionize the market for payroll software.”

Our calculations show that Ceridian HCM Holding Inc. (NYSE:CDAY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Ceridian HCM Holding Inc. (NYSE:CDAY) was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. Ceridian HCM Holding Inc. (NYSE:CDAY) delivered a -21.60% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Ceridian HCM Holding Inc. (NYSE:CDAY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.