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Here’s What Makes Ceridian HCM Holding (CDAY) A Great Investment

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  • CDAY

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 3.06% was recorded by its Investor Class: ARTMX, 3.11% by its Advisor Class: APDMX, and 3.12% by its Institutional Class: APHMX, in the third quarter of 2021, all outpacing the Russell Midcap® Growth Index that delivered a -0.76% return, and the Russell Midcap® Index that was down by -0.93% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Artisan Mid-Cap Fund, in its Q3 2021 investor letter, mentioned Ceridian HCM Holding Inc. (NYSE: CDAY) and discussed its stance on the firm. Ceridian HCM Holding Inc. is a Minneapolis, Minnesota-based software company with a $17.3 billion market capitalization. CDAY delivered a 7.81% return since the beginning of the year, while its 12-month returns are up by 19.44%. The stock closed at $114.88 per share on November 19, 2021.

Here is what Artisan Mid-Cap Fund has to say about Ceridian HCM Holding Inc. in its Q3 2021 investor letter:

"Ceridian is a cloud-based provider of payroll and related software. We began our investment campaign in early 2019 as we believed the company’s transition to a recurring revenue model via its Dayforce suite—which combines HR, payroll, benefits, workforce management and talent management into a single cloud application—would increase uptake for its products. We believed this would not only translate into margin expansion, but also enable the company to capture market share from larger legacy incumbents whose software is less nimble and more limited in functionality and operability. In Q2, Ceridian reported that Dayforce recurring revenue growth reaccelerated to 30% year-over-year and highlighted impressive new customer wins. In addition, the company has a building sales pipeline and is seeing early adoption for its Dayforce Wallet solution, which delivers on-demand digital payroll outside of traditional pay periods. We continue to believe Dayforce is an attractive modern cloud platform that has substantial runway to capture market share from legacy payroll incumbents, and Ceridian’s investments in its sales force and geographic expansion will help it capture this growth potential. Given our high level of conviction, we increased our position size and brought the stock into the CropSM."


Photo by Danial Igdery on Unsplash

Based on our calculations, Ceridian HCM Holding Inc. (NYSE: CDAY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CDAY was in 25 hedge fund portfolios at the end of the first half of 2021, compared to 28 funds in the previous quarter. Ceridian HCM Holding Inc. (NYSE: CDAY) delivered an 8.17% return in the past 3 months.

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