Paycom Software (NYSE:PAYC) Price Target Raised to $194.00 at Citigroup

Key Points

• Citigroup raised Paycom’s price target from $136 to $194 while maintaining a neutral rating; the new target implied 9.57% downside from the prior close.
• Paycom reported stronger-than-expected quarterly results, with revenue of $531.2 million, up 9.8% year over year, and EPS of $2.78 versus the $2.38 consensus estimate.
• Analyst sentiment remains mixed: several firms raised targets and issued buy ratings, but the overall consensus stayed at “Hold,” with an average price target of $204.69.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price upped by equities researchers at Citigroup from $136.00 to $194.00 in a report released on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the software maker's stock. Citigroup's price objective indicates a potential downside of 9.57% from the company's previous close.

PAYC has been the subject of several other reports. TD Cowen raised their price target on shares of Paycom Software from $149.00 to $244.00 and gave the stock a "buy" rating in a research note on Thursday. Cantor Fitzgerald lifted their price target on shares of Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a research note on Thursday. Guggenheim boosted their price target on shares of Paycom Software from $180.00 to $225.00 and gave the stock a "buy" rating in a research report on Thursday. Weiss Ratings upgraded shares of Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. Finally, Mizuho raised their price objective on Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $204.69.

Paycom Software Stock Down 0.7%

Shares of PAYC traded down $1.45 during midday trading on Friday, hitting $214.52. The stock had a trading volume of 1,267,230 shares, compared to its average volume of 1,357,026. The firm has a market cap of $10.22 billion, a price-to-earnings ratio of 22.80, a price-to-earnings-growth ratio of 1.48 and a beta of 0.76. The company has a 50 day simple moving average of $143.00 and a two-hundred day simple moving average of $134.13. Paycom Software has a twelve month low of $104.90 and a twelve month high of $234.60. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million during the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a return on equity of 31.53% and a net margin of 22.78%.Paycom Software's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.06 earnings per share. On average, analysts anticipate that Paycom Software will post 9.37 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of PAYC. Mackenzie Financial Corp boosted its position in Paycom Software by 4.0% in the 3rd quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker's stock valued at $338,000 after buying an additional 63 shares during the period. Boyd Watterson Asset Management LLC OH increased its position in shares of Paycom Software by 0.8% during the fourth quarter. Boyd Watterson Asset Management LLC OH now owns 10,662 shares of the software maker's stock worth $1,699,000 after acquiring an additional 86 shares during the period. Lido Advisors LLC raised its stake in shares of Paycom Software by 1.4% during the fourth quarter. Lido Advisors LLC now owns 6,286 shares of the software maker's stock valued at $1,081,000 after acquiring an additional 87 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Paycom Software by 2.2% during the fourth quarter. Janus Henderson Group PLC now owns 4,090 shares of the software maker's stock valued at $652,000 after acquiring an additional 88 shares in the last quarter. Finally, Evoke Wealth LLC boosted its holdings in shares of Paycom Software by 2.8% in the fourth quarter. Evoke Wealth LLC now owns 3,335 shares of the software maker's stock valued at $531,000 after purchasing an additional 90 shares during the period. Institutional investors own 87.77% of the company's stock.

Paycom Software News Summary

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

• Positive Sentiment: Q2 results exceeded expectations: Paycom reported $531.2 million in revenue, up 9.8% year over year, and $2.78 in non-GAAP EPS, beating consensus estimates. Recurring sales growth and expanding margins added to the positive reaction. Paycom's Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its 2026 forecast: Paycom now expects revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. Free cash flow is expected to exceed $650 million, supporting the improved earnings outlook. Paycom forecasts 2026 revenue and EBITDA
• Positive Sentiment: Automation and AI are improving profitability: Management highlighted savings from automation, internally hosted AI models, and new product releases as drivers of operating leverage and demand for Paycom’s employee-management services. Paycom raises annual forecast on AI-driven demand
• Positive Sentiment: Analysts lifted price targets: KeyBanc raised its target to $270 with an overweight rating, while TD Cowen raised its target to $244 and upgraded the stock to buy. BTIG also increased its target to $230 and maintained a buy rating. Paycom Software analysts boost forecasts
• Neutral Sentiment: Capital returns remain supportive: Paycom repurchased roughly 2.57 million shares for $345.9 million during the quarter, which may enhance per-share results but also reflects substantial cash deployment.
• Negative Sentiment: Some analysts remain cautious at the higher valuation: Barclays, BMO, Stifel, UBS, and Cantor Fitzgerald raised targets but retained neutral or hold-equivalent ratings, with targets ranging from $195 to $210—below the recent market level. Mixed institutional positioning also suggests not all investors share the bullish view.

Paycom Software Company Profile

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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