Paycom Software, Inc. (NYSE:PAYC) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts rate Paycom as a "Hold" on average (1 sell, 11 hold, 5 buy) with a 12‑month consensus target of $170.71.
• Several brokers have recently cut price targets — for example, Jefferies $190→$130, Mizuho $180→$120 and BMO $175→$137 — signaling reduced near‑term expectations despite UBS maintaining a buy at $210.
• Fundamentals: Paycom slightly beat the quarter (EPS $2.45 vs. $2.44; revenue $544.3M vs. $542.8M), revenue rose 10.2% YoY, the stock trades near $126.70 (well below the analyst target) and the company pays a quarterly dividend of $0.375 (≈1.2% yield).

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) has earned an average rating of "Hold" from the seventeen analysts that are currently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, eleven have issued a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $170.7143.

A number of research analysts have commented on PAYC shares. UBS Group decreased their price objective on Paycom Software from $245.00 to $210.00 and set a "buy" rating on the stock in a research report on Monday, January 26th. Jefferies Financial Group cut their price target on Paycom Software from $190.00 to $130.00 and set a "hold" rating on the stock in a research note on Thursday, February 12th. Zacks Research upgraded Paycom Software from a "strong sell" rating to a "hold" rating in a research report on Wednesday, February 18th. BMO Capital Markets dropped their price objective on Paycom Software from $175.00 to $137.00 and set a "market perform" rating for the company in a report on Thursday, February 12th. Finally, Mizuho cut their target price on shares of Paycom Software from $180.00 to $120.00 and set a "neutral" rating on the stock in a research report on Thursday, February 12th.

Institutional Trading of Paycom Software

Institutional investors have recently bought and sold shares of the business. CYBER HORNET ETFs LLC acquired a new position in shares of Paycom Software in the 2nd quarter valued at $29,000. Caitlin John LLC bought a new position in shares of Paycom Software in the 3rd quarter worth $29,000. MUFG Securities EMEA plc acquired a new stake in shares of Paycom Software during the second quarter worth $33,000. Steigerwald Gordon & Koch Inc. bought a new stake in Paycom Software in the third quarter valued at about $31,000. Finally, Brown Brothers Harriman & Co. increased its holdings in Paycom Software by 190.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock valued at $25,000 after purchasing an additional 101 shares during the last quarter. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Trading Up 1.5%

Shares of NYSE PAYC opened at $126.70 on Tuesday. Paycom Software has a 1-year low of $104.90 and a 1-year high of $267.76. The company has a 50-day moving average of $132.46 and a two-hundred day moving average of $165.31. The company has a market cap of $6.88 billion, a PE ratio of 15.66, a P/E/G ratio of 1.31 and a beta of 0.80.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, beating the consensus estimate of $2.44 by $0.01. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The business had revenue of $544.30 million for the quarter, compared to analysts' expectations of $542.79 million. During the same period in the prior year, the firm earned $2.32 earnings per share. Paycom Software's revenue was up 10.2% compared to the same quarter last year. As a group, equities research analysts forecast that Paycom Software will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Monday, March 9th were issued a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 1.2%. The ex-dividend date was Monday, March 9th. Paycom Software's dividend payout ratio is currently 18.54%.

About Paycom Software

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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