Paycom Software FY2025 EPS Estimate Cut by Zacks Research

Key Points

• Zacks Research has reduced Paycom Software's FY2025 earnings per share estimate from $7.29 to $7.28, while the current consensus estimate stands at $7.15 per share.
• Paycom Software reported $2.06 earnings per share for its last quarter, exceeding analysts' expectations and showing a 10.5% year-over-year revenue growth.
• Institutional investors have shown increased interest in Paycom Software, with Baillie Gifford & Co. significantly lifting its position by 1,918.4%.

Paycom Software, Inc. (NYSE:PAYC - Free Report) - Stock analysts at Zacks Research dropped their FY2025 EPS estimates for shares of Paycom Software in a research note issued on Monday, October 13th. Zacks Research analyst Team now forecasts that the software maker will post earnings per share of $7.28 for the year, down from their prior estimate of $7.29. The consensus estimate for Paycom Software's current full-year earnings is $7.15 per share. Zacks Research also issued estimates for Paycom Software's Q4 2026 earnings at $2.05 EPS, FY2026 earnings at $7.71 EPS, Q2 2027 earnings at $1.86 EPS and FY2027 earnings at $8.82 EPS.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.78 by $0.28. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The business had revenue of $483.60 million for the quarter, compared to analyst estimates of $472.00 million. During the same period last year, the company posted $1.62 EPS. The business's revenue was up 10.5% on a year-over-year basis.

PAYC has been the topic of a number of other reports. JPMorgan Chase & Co. raised their target price on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Guggenheim initiated coverage on shares of Paycom Software in a research report on Friday, September 26th. They set a "buy" rating and a $270.00 price target on the stock. Jefferies Financial Group reduced their price target on shares of Paycom Software from $250.00 to $225.00 and set a "hold" rating on the stock in a research report on Monday. UBS Group reduced their price target on shares of Paycom Software from $310.00 to $285.00 and set a "buy" rating on the stock in a research report on Wednesday, September 17th. Finally, BMO Capital Markets lifted their price target on shares of Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research report on Thursday, August 7th. Four equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Paycom Software presently has a consensus rating of "Hold" and an average target price of $245.62.

Paycom Software Price Performance

PAYC opened at $200.74 on Wednesday. The company's 50 day simple moving average is $217.97 and its two-hundred day simple moving average is $228.70. Paycom Software has a 1-year low of $161.24 and a 1-year high of $267.76. The firm has a market capitalization of $11.62 billion, a price-to-earnings ratio of 27.16, a price-to-earnings-growth ratio of 2.21 and a beta of 0.82.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were paid a $0.375 dividend. The ex-dividend date was Monday, August 25th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software's payout ratio is 20.30%.

Insider Activity

In other news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction on Friday, September 12th. The shares were sold at an average price of $223.27, for a total transaction of $334,905.00. Following the completion of the sale, the insider directly owned 24,533 shares of the company's stock, valued at approximately $5,477,482.91. The trade was a 5.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 10.90% of the company's stock.

Institutional Investors Weigh In On Paycom Software

A number of institutional investors and hedge funds have recently bought and sold shares of PAYC. Baillie Gifford & Co. lifted its position in Paycom Software by 1,918.4% in the first quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after acquiring an additional 1,505,990 shares during the last quarter. Alyeska Investment Group L.P. purchased a new stake in Paycom Software in the first quarter valued at $114,440,000. Jennison Associates LLC purchased a new stake in shares of Paycom Software in the second quarter valued at about $49,853,000. Vanguard Group Inc. increased its stake in shares of Paycom Software by 3.0% during the second quarter. Vanguard Group Inc. now owns 5,623,570 shares of the software maker's stock worth $1,301,294,000 after acquiring an additional 165,647 shares during the period. Finally, State Street Corp increased its stake in shares of Paycom Software by 8.4% during the second quarter. State Street Corp now owns 2,097,910 shares of the software maker's stock worth $485,456,000 after acquiring an additional 162,477 shares during the period. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

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