Paycom Software (NYSE:PAYC) Stock Rating Cut to Neutral at BTIG Research

BTIG Research downgraded shares of Paycom Software (NYSE:PAYC) from a buy rating to a neutral rating in a report released on Thursday morning, MarketBeat Ratings reports.

A number of other research firms also recently commented on PAYC. KeyCorp increased their price objective on Paycom Software from $280.00 to $295.00 and gave the company an “overweight” rating in a report on Wednesday, October 28th. BMO Capital Markets boosted their target price on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a research note on Thursday, August 6th. Guggenheim upped their price target on Paycom Software from $225.00 to $300.00 and gave the company a “buy” rating in a report on Friday, October 23rd. Citigroup increased their price target on shares of Paycom Software from $194.00 to $279.00 and gave the company a “neutral” rating in a research note on Tuesday, October 27th. Finally, Stifel Nicolaus increased their price target on shares of Paycom Software from $120.00 to $200.00 and gave the company a “hold” rating in a research note on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $256.43.

Paycom Software Stock Performance

Shares of PAYC stock opened at $249.89 on Thursday. 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 fifty day moving average price of $238.33 and a 200 day moving average price of $166.29. The company has a market cap of $11.26 billion, a P/E ratio of 26.32, a PEG ratio of 1.43 and a beta of 0.75. Paycom Software has a 12 month low of $104.90 and a 12 month high of $275.22.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.56. The company had revenue of $543.80 million for the quarter, compared to analysts’ expectations of $535.26 million. Paycom Software had a return on equity of 47.97% and a net margin of 23.28%. Paycom Software’s quarterly revenue was up 10.2% on a year-over-year basis. During the same period last year, the firm earned $1.94 earnings per share. Sell-side analysts predict that Paycom Software will post 10.80 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 23rd will be paid a $0.3750 dividend. 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 currently 15.94%.

Insider Activity

In other Paycom Software news, insider Shane Hadlock sold 2,577 shares of the firm’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $237.60, for a total transaction of $612,295.20. Following the transaction, the insider owned 70,152 shares of the company’s stock, valued at approximately $16,668,115.20. This trade represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 13.20% of the company’s stock.

Institutional Trading of Paycom Software

A number of large investors have recently made changes to their positions in the company. Fifth Third Bancorp boosted its stake in Paycom Software by 125.8% during the 3rd quarter. Fifth Third Bancorp now owns 47,541 shares of the software maker’s stock worth $10,347,000 after purchasing an additional 26,488 shares during the period. Maryland State Retirement & Pension System grew its position in Paycom Software by 30.1% during the 3rd quarter. Maryland State Retirement & Pension System now owns 10,960 shares of the software maker’s stock worth $2,385,000 after purchasing an additional 2,535 shares during the last quarter. Ritholtz Wealth Management purchased a new position in Paycom Software during the 3rd quarter worth $421,000. Machina Capital S.A.S. acquired a new position in Paycom Software in the third quarter valued at $228,000. Finally, Silver Grove Financial Group Inc. increased its stake in 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 period. 87.77% of the stock is owned by institutional investors and hedge funds.

More Paycom Software News

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

• Positive Sentiment: Paycom beat third-quarter expectations, reporting adjusted earnings of $3.37 per share versus estimates of $2.81 and revenue of $543.8 million versus estimates of $535.3 million. Revenue grew 10.2% year over year, while profit benefited from revenue growth, automation adoption and margin gains. The company also raised its 2026 revenue and EBITDA guidance. Paycom Q3 earnings beat estimates on revenue growth and margin gains
• Positive Sentiment: Paycom declared its first cash dividend, introducing a new way to return capital to shareholders. Paycom declares its first cash dividend
• Positive Sentiment: KeyCorp raised its price target to $297 and maintained an overweight rating, signaling continued confidence in further upside. KeyCorp raises Paycom price target
• Neutral Sentiment: JPMorgan raised its target slightly, from $264 to $265, but kept a neutral rating. JPMorgan analyst recommendations
• Negative Sentiment: BTIG downgraded Paycom from buy to neutral. Other coverage also questioned whether the stock is fully valued after a strong run, despite the raised guidance—potentially limiting investors’ reaction to the earnings beat. Paycom beats estimates and lifts guidance, but valuation is questioned

Paycom Software Company Profile

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.