Paycom Software (NYSE:PAYC) Sets New 12-Month Low – Should You Sell?

Paycom Software, Inc. (NYSE:PAYC)’s stock price hit a new 52-week low during trading on Wednesday . The company traded as low as $121.30 and last traded at $121.4970, with a volume of 151387 shares. The stock had previously closed at $124.94.

Paycom Software News Summary

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

• Positive Sentiment: Q4 results topped estimates: PAYC reported $2.45 EPS and revenue up ~10% y/y, beating consensus and showing margin expansion — supportive near‑term fundamentals. Article Title
• Positive Sentiment: Independent study highlights product ROI: A Forrester‑commissioned study found Paycom’s IWant AI delivers significant three‑year ROI for clients — a credibility boost for growth/product story. Article Title
• Positive Sentiment: Some analysts remain bullish: Guggenheim, KeyCorp and BTIG maintained buy/overweight views (despite trimming targets), signaling pockets of conviction that upside remains for longer‑term investors. Article Title
• Neutral Sentiment: Market commentary and idea pieces: Several outlets (Zacks, Seeking Alpha, Barchart) frame PAYC as a potential value/recovery play after the selloff — useful for investors assessing risk/reward but not immediate catalysts. Article Title
• Negative Sentiment: Weak 2026 revenue guidance spooked investors: Paycom’s FY‑2026 revenue outlook was perceived as conservative/short of consensus, which triggered the initial selloff and remains the primary negative catalyst. Article Title
• Negative Sentiment: Multiple analyst price‑target cuts and neutral/hold moves: Several firms (Citigroup, Jefferies, Cantor Fitzgerald, Mizuho, BMO and others) lowered targets and moved to neutral/hold — increasing selling pressure and signaling reduced near‑term expectations. Article Title
• Negative Sentiment: Shares reached a fresh near‑term low after guidance and analyst reactions, amplifying momentum selling and headline sensitivity. Article Title

Analyst Ratings Changes

A number of research analysts recently commented on PAYC shares. BTIG Research lowered their price target on shares of Paycom Software from $195.00 to $140.00 and set a “buy” rating for the company in a report on Thursday. JPMorgan Chase & Co. lowered their price objective on Paycom Software from $235.00 to $220.00 and set a “neutral” rating for the company in a research note on Thursday, November 6th. Barclays dropped their target price on Paycom Software from $185.00 to $140.00 and set an “equal weight” rating for the company in a report on Thursday. Mizuho decreased their price target on Paycom Software from $180.00 to $120.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Jefferies Financial Group dropped their price objective on shares of Paycom Software from $190.00 to $130.00 and set a “hold” rating for the company in a research note on Thursday. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $168.57.

Paycom Software Trading Up 4.8%

The company’s 50 day moving average is $151.02 and its 200 day moving average is $184.86. The company has a market cap of $7.07 billion, a PE ratio of 15.52, a P/E/G ratio of 1.25 and a beta of 0.79.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.01. The company had revenue of $544.30 million during the quarter, compared to analysts’ expectations of $542.79 million. Paycom Software had a net margin of 22.10% and a return on equity of 24.21%. The firm’s quarterly revenue was up 10.2% on a year-over-year basis. During the same period in the previous year, the company earned $2.32 EPS. Analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be issued a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 1.2%. The ex-dividend date is Monday, March 9th. Paycom Software’s dividend payout ratio (DPR) is presently 18.66%.

Insiders Place Their Bets

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the company’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the sale, the chief financial officer directly owned 14,747 shares in the company, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 10.90% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

A number of hedge funds have recently added to or reduced their stakes in the business. True Wealth Design LLC increased its position in Paycom Software by 946.7% during the 4th quarter. True Wealth Design LLC now owns 157 shares of the software maker’s stock valued at $25,000 after purchasing an additional 142 shares during the period. Brown Brothers Harriman & Co. lifted its position in shares of Paycom Software by 190.6% in the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock worth $25,000 after purchasing an additional 101 shares during the period. Clearstead Advisors LLC lifted its position in shares of Paycom Software by 140.3% in the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock worth $26,000 after purchasing an additional 94 shares during the period. Caitlin John LLC bought a new position in shares of Paycom Software during the third quarter valued at approximately $29,000. Finally, CYBER HORNET ETFs LLC purchased a new position in Paycom Software during the second quarter valued at approximately $29,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Company Profile

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.