Paycom Software (NYSE:PAYC) Given New $194.00 Price Target at Citigroup

Paycom Software (NYSE:PAYC) had its target price raised by Citigroup from $136.00 to $194.00 in a report issued on Friday morning,Benzinga reports. Citigroup currently has a neutral rating on the software maker’s stock.

Other equities analysts also recently issued research reports about the stock. UBS Group lifted their price target on shares of Paycom Software from $195.00 to $205.00 and gave the company a “buy” rating in a report on Thursday. Guggenheim raised their price target on Paycom Software from $180.00 to $225.00 and gave the company a “buy” rating in a report on Thursday. Zacks Research upgraded shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. KeyCorp increased their price target on Paycom Software from $195.00 to $270.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Stifel Nicolaus raised their price objective on shares of Paycom Software from $120.00 to $200.00 and gave the stock a “hold” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $204.69.

Paycom Software Trading Down 0.7%

Shares of NYSE:PAYC opened at $214.52 on Friday. Paycom Software has a 52-week low of $104.90 and a 52-week high of $234.60. The stock has a market capitalization of $10.22 billion, a price-to-earnings ratio of 22.80, a PEG ratio of 1.82 and a beta of 0.76. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.08 and a current ratio of 1.07. The stock’s 50-day simple moving average is $144.49 and its two-hundred day simple moving average is $134.69.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The firm had revenue of $531.20 million for the quarter, compared to analysts’ expectations of $513.12 million. During the same quarter in the prior year, the business earned $2.06 EPS. The business’s quarterly revenue was up 9.8% on a year-over-year basis. Analysts expect that Paycom Software will post 9.44 EPS for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be paid a dividend of $0.375 per share. The ex-dividend date is Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software’s dividend payout ratio (DPR) is currently 17.34%.

Hedge Funds Weigh In On Paycom Software

Several institutional investors have recently bought and sold shares of the business. Mackenzie Financial Corp raised its stake in Paycom Software by 4.0% during the third quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker’s stock worth $338,000 after acquiring an additional 63 shares during the period. Boyd Watterson Asset Management LLC OH grew its holdings in shares of Paycom Software by 0.8% during the fourth quarter. Boyd Watterson Asset Management LLC OH now owns 10,662 shares of the software maker’s stock valued at $1,699,000 after purchasing an additional 86 shares during the last quarter. Lido Advisors LLC raised its position in shares of Paycom Software by 1.4% during the 4th quarter. Lido Advisors LLC now owns 6,286 shares of the software maker’s stock worth $1,081,000 after purchasing an additional 87 shares during the period. Janus Henderson Group PLC lifted its holdings in shares of Paycom Software by 2.2% in the 4th quarter. Janus Henderson Group PLC now owns 4,090 shares of the software maker’s stock worth $652,000 after purchasing an additional 88 shares during the last quarter. Finally, Evoke Wealth LLC lifted its holdings in shares of Paycom Software by 2.8% in the 4th quarter. Evoke Wealth LLC now owns 3,335 shares of the software maker’s stock worth $531,000 after purchasing an additional 90 shares during the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Paycom Software

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

• Positive Sentiment: Q2 results exceeded expectations: Paycom reported $531.2 million in revenue, up 9.8% year over year, and $2.78 in non-GAAP EPS, beating consensus estimates. Recurring sales growth and expanding margins added to the positive reaction. Paycom’s Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its 2026 forecast: Paycom now expects revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. Free cash flow is expected to exceed $650 million, supporting the improved earnings outlook. Paycom forecasts 2026 revenue and EBITDA
• Positive Sentiment: Automation and AI are improving profitability: Management highlighted savings from automation, internally hosted AI models, and new product releases as drivers of operating leverage and demand for Paycom’s employee-management services. Paycom raises annual forecast on AI-driven demand
• Positive Sentiment: Analysts lifted price targets: KeyBanc raised its target to $270 with an overweight rating, while TD Cowen raised its target to $244 and upgraded the stock to buy. BTIG also increased its target to $230 and maintained a buy rating. Paycom Software analysts boost forecasts
• Neutral Sentiment: Capital returns remain supportive: Paycom repurchased roughly 2.57 million shares for $345.9 million during the quarter, which may enhance per-share results but also reflects substantial cash deployment.
• Negative Sentiment: Some analysts remain cautious at the higher valuation: Barclays, BMO, Stifel, UBS, and Cantor Fitzgerald raised targets but retained neutral or hold-equivalent ratings, with targets ranging from $195 to $210—below the recent market level. Mixed institutional positioning also suggests not all investors share the bullish view.

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.