Paycom Software (NYSE:PAYC) Given New $137.00 Price Target at BMO Capital Markets

Paycom Software (NYSE:PAYC) had its target price decreased by BMO Capital Markets from $175.00 to $137.00 in a research report sent to investors on Thursday morning, MarketBeat.com reports. BMO Capital Markets currently has a market perform rating on the software maker’s stock.

A number of other analysts have also commented on the company. Citigroup cut their price target on Paycom Software from $191.00 to $185.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 23rd. Barclays dropped their price objective on shares of Paycom Software from $210.00 to $185.00 and set an “equal weight” rating for the company in a report on Monday, January 12th. TD Cowen cut their target price on shares of Paycom Software from $200.00 to $184.00 and set a “buy” rating on the stock in a research report on Thursday, January 8th. Cantor Fitzgerald decreased their price target on shares of Paycom Software from $170.00 to $135.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Finally, KeyCorp dropped their price target on shares of Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. Five analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $172.64.

Paycom Software Stock Performance

NYSE PAYC opened at $119.46 on Thursday. The firm’s fifty day moving average price is $151.02 and its two-hundred day moving average price is $184.86. The stock has a market cap of $6.72 billion, a PE ratio of 14.77, a PEG ratio of 1.25 and a beta of 0.79. Paycom Software has a fifty-two week low of $104.90 and a fifty-two week high of $267.76.

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

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Monday, March 9th will be paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Monday, March 9th. Paycom Software’s dividend payout ratio (DPR) is currently 18.66%.

Insider Transactions at Paycom Software

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 shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the sale, the chief financial officer owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 10.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. DRW Securities LLC acquired a new stake in Paycom Software during the fourth quarter worth approximately $385,000. Cibc World Markets Corp bought a new position in shares of Paycom Software during the 4th quarter worth approximately $1,093,000. Dimensional Fund Advisors LP grew its position in shares of Paycom Software by 17.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 488,916 shares of the software maker’s stock worth $77,919,000 after buying an additional 71,731 shares during the period. California Public Employees Retirement System grew its position in shares of Paycom Software by 26.4% during the 4th quarter. California Public Employees Retirement System now owns 127,855 shares of the software maker’s stock worth $20,375,000 after buying an additional 26,741 shares during the period. Finally, Federated Hermes Inc. increased its stake in shares of Paycom Software by 12.7% in the 4th quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker’s stock valued at $99,500,000 after acquiring an additional 70,208 shares in the last quarter. 87.77% of the stock is owned by institutional investors and hedge funds.

Key Paycom Software News

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

• Positive Sentiment: Q4 results modestly beat expectations — EPS $2.45 vs. $2.44 consensus and revenue $544.3M (up 10% Y/Y). The beat and margin expansion are supportive of the share price. Paycom’s Q4 Earnings Surpass Expectations
• Positive Sentiment: Independent Forrester study published by Paycom finds IWant™ (Paycom’s AI engine) delivers strong projected 3‑year ROI for clients — a product win that could support longer‑term revenue/upsell potential. New Study Finds Paycom’s IWant Has Delivered Significant ROI
• Positive Sentiment: Board declared a regular quarterly cash dividend (0.375 per share); modest yield but signals shareholder return discipline. Paycom Board Declares Regular Quarterly Cash Dividend
• Neutral Sentiment: Company issued FY‑2026 revenue guidance around ~$2.2B (reported roughly in line with consensus in some feeds), creating uncertainty about growth cadence — the number itself is mixed in interpretation and the market reaction depends on sales cadence assumptions. Paycom FY2026 Guidance (press release)
• Neutral Sentiment: Some analysts remain constructive despite cuts — Guggenheim (buy, PT $180), KeyCorp (overweight, PT $195) and BTIG (buy, PT $140) still see material upside versus the current price, which can cap downside if positive execution continues. Analyst Notes (Benzinga roundup)
• Negative Sentiment: Multiple firms lowered price targets and tone after the results/guidance (examples: Jefferies cut to $130/hold, Cantor Fitzgerald to $115/neutral, Mizuho to $120/neutral, BMO to $137/market perform). Those cuts amplify selling pressure and raise expectations reset risk. Paycom Price Target Cuts (Benzinga)
• Negative Sentiment: Market commentary and news coverage highlighted that Paycom’s 2026 revenue guidance missed some Street models; that miss prompted a notable intraday selloff and a new 52‑week low in some sessions. Guidance concerns are the main catalyst for the decline. Payroll software maker Paycom forecasts weak 2026 revenue

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.