Paycom Software (NYSE:PAYC) Stock Lifted to Buy by Wall Street Zen

Wall Street Zen upgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a buy rating in a research report released on Saturday morning,Wall Street Zen reports.

PAYC has been the subject of a number of other reports. KeyCorp lifted their price objective on Paycom Software from $295.00 to $297.00 and gave the company an “overweight” rating in a report on Thursday. Needham & Company LLC reaffirmed a “hold” rating on shares of Paycom Software in a report on Thursday. Weiss Ratings upgraded shares of Paycom Software from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Cantor Fitzgerald increased their target price on shares of Paycom Software from $195.00 to $285.00 and gave the stock a “neutral” rating in a research report on Friday, October 30th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Paycom Software from $264.00 to $265.00 and gave the company a “neutral” rating in a report on Thursday. Four investment 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. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $255.36.

Paycom Software Trading Down 5.5%

Shares of PAYC opened at $236.21 on Friday. The company has a current ratio of 1.06, a quick ratio of 1.07 and a debt-to-equity ratio of 1.06. The stock has a market cap of $10.65 billion, a PE ratio of 22.63, a PEG ratio of 1.27 and a beta of 0.75. Paycom Software has a 1 year low of $104.90 and a 1 year high of $275.22. The stock has a 50 day simple moving average of $238.29 and a 200-day simple moving average of $166.73.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.37 EPS for the quarter, beating the consensus estimate of $2.81 by $0.56. Paycom Software had a return on equity of 52.12% and a net margin of 23.28%. The business had revenue of $543.80 million for the quarter, compared to analyst estimates of $535.26 million. During the same quarter in the previous year, the firm earned $1.94 EPS. Paycom Software’s quarterly revenue was up 10.2% on a year-over-year basis. On average, sell-side analysts predict that Paycom Software will post 10.92 EPS for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 23rd will be issued a dividend of $0.3750 per share. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, November 23rd. Paycom Software’s dividend payout ratio (DPR) is currently 14.37%.

Insider Transactions at Paycom Software

In other Paycom Software news, insider Shane Hadlock sold 2,577 shares of Paycom Software stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares in the company, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their position. 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 hedge funds and other institutional investors have recently made changes to their positions in PAYC. TD Waterhouse Canada Inc. acquired a new position in Paycom Software during the 3rd quarter worth about $25,000. Laurel Wealth Advisors LLC bought a new stake in Paycom Software during the 3rd quarter worth about $28,000. Caitlin John LLC bought a new stake in Paycom Software during the 2nd quarter worth about $31,000. Silver Grove Financial Group Inc. increased its position in Paycom Software by 134.4% in the 3rd quarter. Silver Grove Financial Group Inc. now owns 143 shares of the software maker’s stock valued at $31,000 after acquiring an additional 82 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Paycom Software in the 2nd quarter valued at about $33,000. 87.77% of the stock is currently owned by institutional investors and hedge funds.

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

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) software that helps employers manage payroll and related workforce processes through a unified platform. Its services support organizations throughout the employee life cycle, from hiring and onboarding to payroll, benefits administration, time and labor management, and talent management.

The company’s platform includes employee self-service tools and Beti, a feature that enables employees to review and complete their own payroll.