Zacks Research Lowers Earnings Estimates for Paycom Software

Key Points

• Zacks Research has reduced its Q3 2025 earnings estimate for Paycom Software from $1.36 to $1.35 per share, while the consensus for full-year earnings remains at $7.15 per share.
• Paycom Software reported Q2 earnings of $2.06 per share, exceeding analysts’ expectations, with revenue rising to $483.60 million, a 10.5% increase year-over-year.
• Despite mixed ratings from analysts, the average target price for Paycom shares is $245.62, with a consensus rating of "Hold."

Paycom Software, Inc. (NYSE:PAYC - Free Report) - Equities researchers at Zacks Research lowered their Q3 2025 earnings estimates for shares of Paycom Software in a report issued on Monday, October 13th. Zacks Research analyst Team now anticipates that the software maker will post earnings of $1.35 per share for the quarter, down from their previous forecast of $1.36. The consensus estimate for Paycom Software's current full-year earnings is $7.15 per share.

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

Several other analysts have also issued reports on the stock. KeyCorp lifted their target price on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. BMO Capital Markets lifted their target price 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. Jefferies Financial Group dropped their target price 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. Guggenheim assumed coverage on shares of Paycom Software in a research note on Friday, September 26th. They issued a "buy" rating and a $270.00 price target on the stock. Finally, Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a research note on Thursday, September 11th. Four analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $245.62.

Paycom Software Stock Performance

PAYC stock opened at $201.49 on Tuesday. The firm has a market cap of $11.66 billion, a PE ratio of 27.27, a P/E/G ratio of 2.19 and a beta of 0.82. The firm's fifty day moving average is $218.42 and its 200 day moving average is $228.90. Paycom Software has a one year low of $161.24 and a one year high of $267.76.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in PAYC. SouthState Corp acquired a new position in Paycom Software during the 1st quarter worth approximately $27,000. von Borstel & Associates Inc. acquired a new position in Paycom Software during the 1st quarter worth approximately $27,000. CYBER HORNET ETFs LLC acquired a new position in Paycom Software during the 2nd quarter worth approximately $29,000. Golden State Wealth Management LLC grew its holdings in Paycom Software by 112.3% during the 1st quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock worth $30,000 after acquiring an additional 73 shares in the last quarter. Finally, MUFG Securities EMEA plc purchased a new position in shares of Paycom Software in the 2nd quarter valued at $33,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Insider Transactions at Paycom Software

In related news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the completion of the transaction, the insider owned 24,533 shares in the company, valued at approximately $5,477,482.91. The trade was a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 10.90% of the company's stock.

Paycom Software Dividend Announcement

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

About Paycom Software

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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