Paycom Software Q2 EPS Forecast Reduced by Zacks Research

Paycom Software, Inc. (NYSE:PAYC) – Equities researchers at Zacks Research decreased their Q2 2025 earnings per share estimates for Paycom Software in a report released on Wednesday, May 28th. Zacks Research analyst R. Department now anticipates that the software maker will earn $1.45 per share for the quarter, down from their prior forecast of $1.51. 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 Q3 2025 earnings at $1.61 EPS, Q4 2025 earnings at $2.08 EPS, FY2025 earnings at $7.64 EPS, Q1 2026 earnings at $2.67 EPS, Q2 2026 earnings at $1.70 EPS, Q3 2026 earnings at $1.86 EPS, Q4 2026 earnings at $2.28 EPS, FY2026 earnings at $8.52 EPS and Q1 2027 earnings at $3.00 EPS.

Paycom Software (NYSE:PAYC) last released its quarterly earnings results on Wednesday, May 7th. The software maker reported $2.80 EPS for the quarter, beating analysts’ consensus estimates of $2.62 by $0.18. The company had revenue of $530.50 million for the quarter, compared to analyst estimates of $522.92 million. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%. The company’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.59 earnings per share.

Several other equities research analysts also recently issued reports on the company. Barclays raised their price target on Paycom Software from $221.00 to $240.00 and gave the company an “equal weight” rating in a research report on Thursday, May 8th. Wall Street Zen downgraded Paycom Software from a “buy” rating to a “hold” rating in a research report on Tuesday, March 4th. Stifel Nicolaus upped their price target on Paycom Software from $187.00 to $215.00 and gave the stock a “hold” rating in a report on Thursday, May 8th. Piper Sandler increased their price objective on Paycom Software from $224.00 to $246.00 and gave the company a “neutral” rating in a research report on Thursday, May 8th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Paycom Software in a research report on Thursday, May 8th. Eleven investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to MarketBeat, Paycom Software presently has a consensus rating of “Hold” and an average target price of $226.90.

Paycom Software Price Performance

Shares of PAYC opened at $259.13 on Monday. The company has a market capitalization of $14.99 billion, a PE ratio of 29.12, a price-to-earnings-growth ratio of 2.40 and a beta of 0.80. Paycom Software has a one year low of $139.50 and a one year high of $262.80. The company’s fifty day moving average price is $231.35 and its 200 day moving average price is $220.66.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 9th. Investors of record on Tuesday, May 27th will be given a $0.375 dividend. The ex-dividend date of this dividend is Tuesday, May 27th. This represents a $1.50 annualized dividend and a yield of 0.58%. Paycom Software’s dividend payout ratio (DPR) is currently 21.40%.

Insiders Place Their Bets

In other news, insider Bradley Scott Smith sold 3,000 shares of the stock in a transaction that occurred on Thursday, March 13th. The stock was sold at an average price of $201.01, for a total value of $603,030.00. Following the completion of the transaction, the insider now directly owns 28,733 shares of the company’s stock, valued at approximately $5,775,620.33. This represents a 9.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Chad R. Richison sold 120,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $243.52, for a total value of $29,222,400.00. Following the transaction, the chief executive officer now owns 3,307,249 shares of the company’s stock, valued at $805,381,276.48. This trade represents a 3.50% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 149,426 shares of company stock worth $36,577,802 over the last 90 days. Corporate insiders own 10.90% of the company’s stock.

Institutional Trading of Paycom Software

Large investors have recently bought and sold shares of the stock. Baillie Gifford & Co. boosted its stake in shares of Paycom Software by 1,918.4% in the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker’s stock valued at $346,180,000 after purchasing an additional 1,505,990 shares in the last quarter. FMR LLC increased its position in shares of Paycom Software by 137.8% during the 4th quarter. FMR LLC now owns 2,396,452 shares of the software maker’s stock worth $491,201,000 after purchasing an additional 1,388,533 shares in the last quarter. Sylebra Capital LLC lifted its holdings in Paycom Software by 63.8% during the 4th quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker’s stock valued at $658,996,000 after purchasing an additional 1,252,617 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in Paycom Software in the first quarter valued at about $114,440,000. Finally, Arrowstreet Capital Limited Partnership boosted its position in Paycom Software by 1,153.4% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 401,889 shares of the software maker’s stock valued at $82,375,000 after buying an additional 369,825 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors.

About Paycom Software

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.