Paycom Software (NYSE:PAYC) Price Target Raised to $244.00 at TD Cowen

Key Points

• TD Cowen raised Paycom Software’s price target from $149 to $244 and maintained a “buy” rating, implying 12.75% upside from the prior close.
• Paycom reported quarterly earnings of $2.78 per share and revenue of $531.2 million, beating analyst estimates of $2.38 and $513.1 million, respectively; revenue increased 9.8% year over year.
• Analyst sentiment remains mixed despite several target increases: Paycom’s consensus rating is “Hold,” with an average price target of $200.23, while shares recently traded at $216.40.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price raised by equities researchers at TD Cowen from $149.00 to $244.00 in a report released on Thursday,Benzinga reports. The firm currently has a "buy" rating on the software maker's stock. TD Cowen's price objective would indicate a potential upside of 12.75% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the stock. BTIG Research raised their price target on shares of Paycom Software from $160.00 to $230.00 and gave the company a "buy" rating in a research note on Thursday. Guggenheim increased their price objective on shares of Paycom Software from $180.00 to $225.00 and gave the company a "buy" rating in a research note on Thursday. Weiss Ratings raised shares of Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. BMO Capital Markets increased their price target on Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a research note on Thursday. Finally, Mizuho boosted their price objective on Paycom Software from $120.00 to $130.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Paycom Software currently has a consensus rating of "Hold" and a consensus price target of $200.23.

Paycom Software Price Performance

Shares of PAYC stock traded up $41.60 during trading hours on Thursday, reaching $216.40. The company's stock had a trading volume of 3,309,190 shares, compared to its average volume of 1,353,007. The firm's 50 day simple moving average is $141.40 and its 200-day simple moving average is $133.66. The company has a market capitalization of $10.31 billion, a price-to-earnings ratio of 24.77, a PEG ratio of 1.49 and a beta of 0.76. Paycom Software has a fifty-two week low of $104.90 and a fifty-two week high of $248.95. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83.

Paycom Software (NYSE:PAYC - Get Free Report) last announced 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 business had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.Paycom Software's revenue for the quarter was up 9.8% on a year-over-year basis. During the same period in the prior year, the company earned $2.06 EPS. Sell-side analysts forecast that Paycom Software will post 9.37 earnings per share for the current year.

Hedge Funds Weigh In On Paycom Software

A number of institutional investors and hedge funds have recently modified their holdings of PAYC. Brown Brothers Harriman & Co. boosted its stake in Paycom Software by 190.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock worth $25,000 after acquiring an additional 101 shares in the last quarter. Clearstead Advisors LLC raised its holdings in shares of Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares during the period. CYBER HORNET ETFs LLC acquired a new position in shares of Paycom Software during the second quarter valued at about $29,000. MUFG Securities EMEA plc bought a new position in shares of Paycom Software during the 2nd quarter worth about $33,000. Finally, Palisade Asset Management LLC acquired a new stake in shares of Paycom Software in the 3rd quarter valued at about $33,000. 87.77% of the stock is currently owned by institutional investors.

Paycom Software News Summary

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

• Positive Sentiment: Q2 beat expectations: Revenue rose 9.8% year over year to $531.2 million, exceeding the $513.1 million consensus estimate. Non-GAAP earnings of $2.78 per diluted share also surpassed expectations and increased from $2.06 a year earlier. Paycom Q2 2026 Results
• Positive Sentiment: Higher 2026 guidance: Management raised its full-year revenue outlook to $2.197 billion–$2.212 billion and adjusted EBITDA guidance to $1.007 billion–$1.022 billion. The improved forecast reflects recurring sales growth, product expansion and expected benefits from automation and internally hosted AI models. Paycom 2026 Forecast
• Positive Sentiment: Capital returns and margins supported sentiment: Paycom repurchased approximately 2.57 million shares for $345.9 million during the quarter, while expanding margins and anticipated free cash flow above $650 million highlighted operating leverage. Paycom Q2 Earnings Call Takeaways
• Positive Sentiment: Analysts lifted targets: BTIG raised its target to $230 and maintained a buy rating, while KeyCorp increased its target to $270 and assigned an overweight rating. These revisions suggest some analysts view the earnings and outlook improvements as warranting a higher valuation. Analyst Forecast Revisions
• Neutral Sentiment: Analyst reactions were mixed: Barclays, BMO Capital Markets, Stifel and Cantor Fitzgerald raised their targets but retained equal-weight, market-perform, hold or neutral ratings.
• Negative Sentiment: The stock’s sharp move has placed it above several revised targets, including Barclays’ $210, BMO’s $208 and Stifel’s $200, suggesting valuation and near-term upside may be more limited for cautious investors.

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.

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.

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