Paycom Software (NYSE:PAYC) Stock Crosses Below Fifty Day Moving Average Following Analyst Downgrade

Key Points

• Paycom shares fell below their 50-day moving average after Citigroup cut its price target from $279 to $264 while maintaining a neutral rating. The stock traded as low as $235.83, below its $238.29 average.
• Paycom reported quarterly EPS of $3.37, beating analyst estimates, while revenue rose 10.2% year over year; the company also raised its 2026 revenue and EBITDA guidance.
• Analyst views remain mixed, with a consensus “Hold” rating and an average price target of $255.36. Paycom also declared its first quarterly dividend of $0.375 per share, a 0.6% yield.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s stock price passed below its 50-day moving average during trading on Friday after Citigroup lowered their price target on the stock from $279.00 to $264.00. The stock has a 50-day moving average of $238.29 and traded as low as $235.83. Citigroup currently has a neutral rating on the stock. Paycom Software shares last traded at $236.2090, with a volume of 1,243,020 shares trading hands.

PAYC has been the topic of a number of other reports. Needham & Company LLC restated a "hold" rating on shares of Paycom Software in a research report on Thursday. Cantor Fitzgerald increased their target price on Paycom Software from $195.00 to $285.00 and gave the stock a "neutral" rating in a report on Friday, October 30th. 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 report on Tuesday, October 27th. Guggenheim increased their price objective on shares of Paycom Software from $225.00 to $300.00 and gave the stock a "buy" rating in a report on Friday, October 23rd. Finally, Stifel Nicolaus boosted their target price on shares of Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Paycom Software presently has an average rating of "Hold" and a consensus target price of $255.36.

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 241 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the transaction, the insider directly owned 69,911 shares of the company's stock, valued at approximately $16,783,533.77. This represents a 0.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 13.20% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Paycom Software

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

• Positive Sentiment: Paycom beat third-quarter earnings expectations, with EPS of $3.37 versus the cited $2.76 consensus. Earnings growth, higher revenue, and margin gains were linked to wider adoption of automation; the company also 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, signaling confidence in further upside. KeyCorp recommendations
• Positive Sentiment: Paycom declared its first cash dividend, adding a shareholder-return component to the investment case. Paycom declares its first cash dividend
• Neutral Sentiment: JPMorgan raised its target slightly, from $264 to $265, but kept a neutral rating. JPMorgan recommendations
• Negative Sentiment: BTIG downgraded PAYC from buy to neutral, a more cautious view that could pressure shares despite the earnings beat. BTIG Research recommendations
• Negative Sentiment: Citigroup cut its target from $279 to $264 and retained a neutral rating. Other coverage also raised questions about whether Paycom’s shares are fully valued after a strong run, tempering the positive results. Citigroup recommendations Paycom stock could be rich despite raised guidance

Hedge Funds Weigh In On Paycom Software

A number of institutional investors have recently bought and sold shares of the business. TD Waterhouse Canada Inc. acquired a new position in shares of Paycom Software during the third quarter worth approximately $25,000. Laurel Wealth Advisors LLC bought a new position in Paycom Software during the 3rd quarter valued at $28,000. Caitlin John LLC bought a new stake in shares of Paycom Software in the 2nd quarter worth $31,000. Silver Grove Financial Group Inc. raised its holdings in shares of Paycom Software by 134.4% in the third quarter. Silver Grove Financial Group Inc. now owns 143 shares of the software maker's stock valued at $31,000 after purchasing an additional 82 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Paycom Software during the second quarter worth about $33,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Stock Down 5.5%

The stock's 50-day simple moving average is $238.29 and its 200-day simple moving average is $166.73. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm has a market capitalization of $10.65 billion, a P/E ratio of 22.63, a P/E/G ratio of 1.42 and a beta of 0.75.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its earnings results on Wednesday, November 4th. The software maker reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.56. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The firm had revenue of $543.80 million for the quarter, compared to analyst estimates of $535.26 million. During the same period in the previous year, the company posted $1.94 earnings per share. The business's revenue was up 10.2% on a year-over-year basis. As a group, research analysts predict that Paycom Software, Inc. will post 10.80 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 23rd will be given a dividend of $0.3750 per share. This represents a $1.50 annualized dividend and a yield of 0.6%. The ex-dividend date is Monday, November 23rd. Paycom Software's dividend payout ratio is presently 15.94%.

About Paycom Software

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.

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