Sather Loads Up Paycom With 18,000 Shares Bought Last Quarter

Sather Financial Group Inc increased its stake in Paycom Software,(NYSE:PAYC) according to a January 26, 2026, SEC filing.

What happened

Sather Financial Group Inc disclosed in a Securities and Exchange Commission (SEC) filing dated January 26, 2026, that it bought an additional 18,035 shares of Paycom Software during the fourth quarter. The estimated value of these purchases was $3.20 million, calculated using the average closing price for the quarter. The fund’s total position in Paycom Software decreased in value by $9.32 million, a figure that includes both the additional investment and share price changes over the period.

What else to know

• The fund’s Paycom Software stake rose to 2.3% of its $1.86 billion reportable U.S. equity AUM as of December 31, 2025
• Top holdings after the filing:
  • NASDAQ:GOOGL: $221.90 million (11.9% of AUM)
  • NYSE:BRK-B: $192.74 million (10.4% of AUM)
  • NASDAQ:ANET: $118.95 million (6.4% of AUM)
  • NASDAQ:MSFT: $110.52 million (5.9% of AUM)
  • TSX:BN: $97.26 million (5.2% of AUM)
• As of January 23, 2026, Paycom Software shares were priced at $152.29, down 25.3% over the past year and underperforming the S&P 500 by 38.3 percentage points

Company overview

Company snapshot

• Offers a comprehensive suite of cloud-based human capital management (HCM) applications, including payroll, talent acquisition, time and labor management, and compliance solutions.
• Generates revenue primarily through subscription-based software-as-a-service (SaaS) fees, providing businesses with integrated tools to manage the entire employment lifecycle.
• Targets small to mid-sized companies across the United States seeking scalable, data-driven HR and payroll solutions.

Paycom Software, Inc. is a leading provider of cloud-based HCM solutions, employing 7,306 people and serving a broad base of small to mid-sized enterprises. The company leverages a unified SaaS platform to streamline HR, payroll, and compliance processes, enabling clients to improve efficiency and data accuracy. Paycom's integrated approach and focus on automation provide a competitive edge in the evolving HR technology market.

What this transaction means for investors

Sather is buying Paycom stock at a time when it has struggled. It currently trades near a five-year low as growth has decelerated. Five years ago, it was growing revenue at more than 25% per year. While that growth has not stopped, the deceleration is notable.

In the first nine months of 2025, revenue growth was around 10%. That is a respectable figure, but a far cry from earlier years. Consequently, the stock is down more than 60% over the last five years.

Nonetheless, that has also made its valuation considerably more attractive. Today, it sells at a P/E ratio of about 19. During the pandemic, its earnings multiple sometimes exceeded 150.

Admittedly, Sather may have also added shares early. Despite increasing the size of its Paycom, the position’s value fell by more than $9 million to $42.7 million, even after adding 7% more shares. Still, even if it bought a little too soon, the low valuation makes it more likely its purchase could pay off in the long run.

Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Arista Networks, Berkshire Hathaway, Brookfield, Brookfield Corporation, Microsoft, and Paycom Software. The Motley Fool has a disclosure policy.