Paycom Software (NYSE:PAYC) Stock Gets Downgrade from BTIG Research

Paycom Software (NYSE:PAYC) was downgraded by equities research analysts at BTIG Research from a “buy” rating to a “neutral” rating in a research report issued on Thursday, Marketbeat Ratings reports.

Other research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. increased their target price on shares of Paycom Software from $140.00 to $264.00 and gave the company a “neutral” rating in a report on Tuesday, August 25th. Citigroup boosted their price target on Paycom Software from $194.00 to $279.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 27th. Wall Street Zen cut Paycom Software from a “buy” rating to a “hold” rating in a report on Sunday, September 6th. Barclays raised their price objective on Paycom Software from $210.00 to $250.00 and gave the company an “equal weight” rating in a research note on Tuesday, October 13th. Finally, Zacks Research cut Paycom Software from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $255.36.

Paycom Software Price Performance

Shares of PAYC traded down $13.81 during mid-day trading on Thursday, hitting $236.21. The company’s stock had a trading volume of 1,243,020 shares, compared to its average volume of 588,849. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software has a 1-year low of $104.90 and a 1-year high of $275.22. The firm has a market capitalization of $10.65 billion, a P/E ratio of 22.63, a P/E/G ratio of 1.42 and a beta of 0.75. The firm 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 released its quarterly earnings data on Wednesday, November 4th. The software maker reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.81 by $0.56. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The firm had revenue of $543.80 million during the quarter, compared to analysts’ expectations of $535.26 million. During the same quarter in the prior year, the business posted $1.94 earnings per share. Paycom Software’s revenue was up 10.2% compared to the same quarter last year. Analysts predict that Paycom Software will post 10.80 EPS for the current fiscal year.

Insider Buying and Selling at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the company’s 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 sale, the insider directly owned 70,152 shares in the company, valued at $16,668,115.20. This represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 13.20% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fluent Financial LLC acquired a new position in shares of Paycom Software in the second quarter valued at approximately $2,439,000. Principal Financial Group Inc. lifted its stake in shares of Paycom Software by 290.5% during the first quarter. Principal Financial Group Inc. now owns 243,762 shares of the software maker’s stock valued at $29,627,000 after buying an additional 181,346 shares during the period. Greenwich Wealth Management LLC acquired a new stake in Paycom Software during the second quarter worth approximately $5,118,000. Corient Private Wealth LP acquired a new stake in Paycom Software during the second quarter worth approximately $10,803,000. Finally, Syon Capital LLC grew its stake in Paycom Software by 137.5% in the 2nd quarter. Syon Capital LLC now owns 7,117 shares of the software maker’s stock worth $894,000 after acquiring an additional 4,120 shares during the period. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Trending Headlines about 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

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.