Paycom Software (NYSE:PAYC) Stock Gets Price Target Cut from Citigroup

Key Points

• Citigroup cut its price target on Paycom from $279 to $264 and maintained a neutral rating; the new target implies 11.77% upside from the stock’s current price.
• Analyst views remain mostly cautious: MarketBeat’s consensus rating is “Hold,” with an average price target of $255.36. Other firms’ targets range from $160 to $300.
• Paycom beat quarterly estimates, reporting $3.37 in earnings per share versus $2.81 expected and revenue of $543.8 million, up 10.2% year over year.

Paycom Software (NYSE:PAYC - Get Free Report) had its price objective cut by Citigroup from $279.00 to $264.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the software maker's stock. Citigroup's target price indicates a potential upside of 11.77% from the stock's current price.

Several other equities research analysts have also issued reports on PAYC. Guggenheim lifted their price objective on Paycom Software from $225.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, October 23rd. JPMorgan Chase & Co. raised their price target on Paycom Software from $264.00 to $265.00 and gave the company a "neutral" rating in a report on Thursday. Jefferies Financial Group lifted their price target on Paycom Software from $160.00 to $300.00 and gave the company a "hold" rating in a research report on Tuesday, October 27th. Needham & Company LLC reissued a "hold" rating on shares of Paycom Software in a report on Thursday. Finally, Weiss Ratings upgraded shares of Paycom Software from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $255.36.

Paycom Software Price Performance

PAYC traded down $13.81 during trading on Friday, reaching $236.21. 1,201,919 shares of the company were exchanged, compared to its average volume of 1,162,437. Paycom Software has a 12-month low of $104.90 and a 12-month high of $275.22. The company's 50-day moving average is $238.33 and its two-hundred day moving average is $166.29. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The company has a market cap of $10.65 billion, a price-to-earnings ratio of 22.63, a P/E/G ratio of 1.43 and a beta of 0.75.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.37 earnings per share for the quarter, beating the consensus estimate of $2.81 by $0.56. Paycom Software had a return on equity of 47.97% and a net margin of 23.28%. The firm had revenue of $543.80 million for the quarter, compared to analysts' expectations of $535.26 million. During the same period in the prior year, the business posted $1.94 earnings per share. The company's revenue was up 10.2% on a year-over-year basis. Research analysts forecast that Paycom Software will post 10.80 earnings per share for the current fiscal year.

Insider Activity at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the sale, the insider owned 70,152 shares of the company's stock, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 13.20% of the company's stock.

Institutional Trading of Paycom Software

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in Paycom Software in the 2nd quarter valued at approximately $632,460,000. Reinhart Partners LLC. raised its stake in shares of Paycom Software by 20.1% in the second quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker's stock worth $153,320,000 after purchasing an additional 204,191 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Paycom Software by 10.1% in the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker's stock worth $65,435,000 after purchasing an additional 49,460 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Paycom Software during the second quarter valued at $42,858,000. Finally, Robeco Institutional Asset Management B.V. lifted its holdings in shares of Paycom Software by 108.1% during the third quarter. Robeco Institutional Asset Management B.V. now owns 308,393 shares of the software maker's stock valued at $67,122,000 after purchasing an additional 160,185 shares in the last quarter. Institutional investors own 87.77% of the company's stock.

Key Stories Impacting Paycom Software

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Third-quarter earnings were $3.37 per share, above the $2.81 consensus, while revenue of $543.8 million topped estimates and rose 10.2% year over year. Coverage also cited automation adoption and margin gains, and Paycom raised its 2026 revenue and EBITDA guidance. Paycom Q3 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: KeyCorp raised its price target to $297 and maintained an overweight rating. Paycom also declared its first cash dividend, adding a potential shareholder-return appeal. Paycom Declares Its First Cash Dividend
• Neutral Sentiment: JPMorgan lifted its target slightly to $265 but kept a neutral rating, suggesting limited conviction in further gains at current levels. JPMorgan analyst recommendations
• Negative Sentiment: BTIG downgraded Paycom from buy to neutral. Commentary also cautioned that the stock could be richly valued after gaining more than 40% over the past year, despite the improved outlook. Paycom Stock Could Be Rich Despite Raised Revenue Guidance

Paycom Software Company Profile

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company's software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.