Zacks Research Predicts Higher Earnings for Paycom Software

Paycom Software, Inc. (NYSE:PAYC - Free Report) - Equities research analysts at Zacks Research boosted their Q1 2025 earnings per share estimates for shares of Paycom Software in a report released on Wednesday, March 5th. Zacks Research analyst R. Department now forecasts that the software maker will earn $2.36 per share for the quarter, up from their previous estimate of $2.29. The consensus estimate for Paycom Software's current full-year earnings is $7.15 per share. Zacks Research also issued estimates for Paycom Software's Q2 2025 earnings at $1.51 EPS, Q3 2025 earnings at $1.62 EPS, Q4 2025 earnings at $2.06 EPS, FY2025 earnings at $7.56 EPS, Q1 2026 earnings at $2.34 EPS, Q2 2026 earnings at $1.69 EPS, Q3 2026 earnings at $1.88 EPS, Q4 2026 earnings at $2.14 EPS, FY2026 earnings at $8.05 EPS and FY2027 earnings at $10.01 EPS.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The software maker reported $2.02 EPS for the quarter, beating the consensus estimate of $1.99 by $0.03. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%.

Several other analysts have also commented on PAYC. Barclays dropped their price objective on Paycom Software from $229.00 to $221.00 and set an "equal weight" rating on the stock in a report on Thursday, January 23rd. Citigroup cut their price target on shares of Paycom Software from $234.00 to $221.00 and set a "neutral" rating for the company in a report on Thursday, January 16th. StockNews.com downgraded shares of Paycom Software from a "buy" rating to a "hold" rating in a report on Tuesday, March 4th. JPMorgan Chase & Co. lifted their target price on shares of Paycom Software from $185.00 to $200.00 and gave the company a "neutral" rating in a research report on Thursday, February 13th. Finally, Stifel Nicolaus reduced their price target on shares of Paycom Software from $215.00 to $187.00 and set a "hold" rating for the company in a research report on Thursday, February 13th. Twelve investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $212.80.

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Paycom Software Stock Performance

Shares of Paycom Software stock traded down $3.38 on Monday, hitting $203.18. The company's stock had a trading volume of 307,147 shares, compared to its average volume of 706,003. The company has a market capitalization of $11.63 billion, a price-to-earnings ratio of 22.88, a price-to-earnings-growth ratio of 2.40 and a beta of 1.14. Paycom Software has a 1 year low of $139.50 and a 1 year high of $242.74. The firm has a fifty day moving average price of $208.92 and a 200-day moving average price of $198.95.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 24th. Stockholders of record on Monday, March 10th will be given a $0.375 dividend. The ex-dividend date of this dividend is Monday, March 10th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.74%. Paycom Software's dividend payout ratio (DPR) is presently 16.85%.

Insider Activity at Paycom Software

In other Paycom Software news, COO Randall Peck sold 3,600 shares of the business's stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $212.19, for a total value of $763,884.00. Following the transaction, the chief operating officer now directly owns 50,665 shares in the company, valued at $10,750,606.35. The trade was a 6.63 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director J C. Watts, Jr. sold 500 shares of the stock in a transaction that occurred on Monday, February 24th. The shares were sold at an average price of $218.22, for a total transaction of $109,110.00. Following the completion of the sale, the director now directly owns 7,730 shares of the company's stock, valued at approximately $1,686,840.60. This trade represents a 6.08 % decrease in their position. The disclosure for this sale can be found here. Insiders own 14.50% of the company's stock.

Institutional Investors Weigh In On Paycom Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Glass Jacobson Investment Advisors llc increased its position in shares of Paycom Software by 746.7% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker's stock worth $26,000 after purchasing an additional 112 shares during the last quarter. Brooklyn Investment Group purchased a new stake in shares of Paycom Software in the 3rd quarter valued at approximately $28,000. Pin Oak Investment Advisors Inc. raised its stake in shares of Paycom Software by 73.3% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 182 shares of the software maker's stock valued at $30,000 after acquiring an additional 77 shares during the period. Murphy & Mullick Capital Management Corp purchased a new position in shares of Paycom Software during the 4th quarter worth approximately $30,000. Finally, First Horizon Advisors Inc. increased its holdings in Paycom Software by 821.7% in the 3rd quarter. First Horizon Advisors Inc. now owns 212 shares of the software maker's stock valued at $35,000 after purchasing an additional 189 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Company Profile

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.