Citigroup Cuts Paycom Software (NYSE:PAYC) Price Target to $128.00

Paycom Software (NYSE:PAYC) had its target price cut by Citigroup from $185.00 to $128.00 in a research report sent to investors on Friday morning,Benzinga reports. They currently have a neutral rating on the software maker’s stock.

A number of other equities analysts also recently issued reports on the company. BTIG Research lowered their price objective on Paycom Software from $195.00 to $140.00 and set a “buy” rating for the company in a research report on Thursday. JPMorgan Chase & Co. lowered their price target on shares of Paycom Software from $235.00 to $220.00 and set a “neutral” rating for the company in a report on Thursday, November 6th. UBS Group reduced their price objective on shares of Paycom Software from $245.00 to $210.00 and set a “buy” rating on the stock in a research note on Monday, January 26th. BMO Capital Markets decreased their price objective on shares of Paycom Software from $175.00 to $137.00 and set a “market perform” rating for the company in a research report on Thursday. Finally, Mizuho dropped their target price on shares of Paycom Software from $180.00 to $120.00 and set a “neutral” rating on the stock in a report on Thursday. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $168.57.

Paycom Software Stock Performance

Shares of NYSE:PAYC opened at $125.56 on Friday. Paycom Software has a 52 week low of $104.90 and a 52 week high of $267.76. The firm has a market cap of $7.07 billion, a PE ratio of 15.52, a price-to-earnings-growth ratio of 1.40 and a beta of 0.79. The firm’s fifty day moving average is $150.22 and its 200-day moving average is $183.35.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.01. The business had revenue of $544.30 million during the quarter, compared to analyst estimates of $542.79 million. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.Paycom Software’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period last year, the company earned $2.32 EPS. Sell-side analysts forecast that Paycom Software will post 7.15 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be issued a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Monday, March 9th. Paycom Software’s dividend payout ratio (DPR) is presently 18.54%.

Insider Buying and Selling at Paycom Software

In other news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the transaction, the chief financial officer owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This represents a 8.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 10.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC acquired a new position in shares of Paycom Software during the fourth quarter worth approximately $638,000. AQR Capital Management LLC increased its stake in Paycom Software by 23.7% during the 1st quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock valued at $4,136,000 after purchasing an additional 3,674 shares in the last quarter. United Services Automobile Association acquired a new position in Paycom Software during the first quarter worth $215,000. Empowered Funds LLC raised its holdings in Paycom Software by 22.8% during the first quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock worth $1,739,000 after buying an additional 1,480 shares during the last quarter. Finally, Focus Partners Wealth lifted its stake in shares of Paycom Software by 220.8% in the first quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock valued at $861,000 after buying an additional 2,712 shares in the last quarter. Institutional investors own 87.77% of the company’s stock.

Key Headlines Impacting Paycom Software

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

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.