Paycom Stumbles After Delayed Opening
Paycom Software (NASDAQ: PAYC) opened for trading shortly on Tuesday after 9:30 am EST, facing heavy selling pressure. Paycom quickly sold off, shedding 15 percent by 10:30 a.m. Trading was delayed since Friday.
Despite a volatile session experienced by the S&P 500, Paycom's day was relatively subdued after finding its low. Paycom tested the low, $15.15, three more times during the day, each time failing to push lower. The stock closed at $15.35, a two percent gain for IPO investors and a 14 percent loss for buyers at the open.
The Paycom deal consisted of 6.6 million shares to be issued through Barclays Capital and J.P. Morgan. Originally, the company was expecting to price its shares in the $18 to $20 range, raising $126 million, but shares priced at $15.
In a recent filing, the company started that it expects to earn between $300,000 and $1.5 million for the first quarter, a decline from $5.5 million one year ago.
The company said that the decline was due to investments in growth, including, “sales commissions, new office openings, hiring new staff, and reorganization expenses in connection with its planned public offering.”
Paycom is a human services and payroll provider. The company was founded in 1998 in Oklahoma City, and currently employs 840 people.
Note: Previously the article referred to Paycom Software, ticker PAYC, incorrectly as Paylocity. Paylocity began trading March 19 and is in no way equivalent to Paycom Software.
Disclosure: At the time of this writing, the author holds no positions in any previously mentioned securities. He may choose to hold long or short positions without notice in the future.
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