Paycom Software (NYSE:PAYC) Shares Gap Down Following Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC)’s share price gapped down before the market opened on Thursday after Jefferies Financial Group lowered their price target on the stock from $190.00 to $130.00. The stock had previously closed at $118.71, but opened at $106.79. Jefferies Financial Group currently has a hold rating on the stock. Paycom Software shares last traded at $118.3470, with a volume of 1,081,319 shares traded.

Other equities analysts also recently issued reports about the stock. Barclays cut their price target on shares of Paycom Software from $185.00 to $140.00 and set an “equal weight” rating on the stock in a report on Thursday. Guggenheim lowered their price objective on shares of Paycom Software from $210.00 to $180.00 and set a “buy” rating on the stock in a research report on Thursday. Citigroup reduced their target price on shares of Paycom Software from $191.00 to $185.00 and set a “neutral” rating for the company in a research report on Tuesday, December 23rd. Mizuho lowered their price target on shares of Paycom Software from $180.00 to $120.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Cantor Fitzgerald dropped their price objective on Paycom Software from $135.00 to $115.00 and set a “neutral” rating on the stock in a research note on Thursday. Five investment 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. According to MarketBeat.com, Paycom Software has an average rating of “Hold” and an average price target of $172.64.

Insider Buying and Selling

In related news, CFO Robert D. Foster sold 1,300 shares of the company’s stock in a transaction that occurred 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 10.90% of the company’s stock.

Paycom Software News Roundup

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

Institutional Investors Weigh In On Paycom Software

Institutional investors and hedge funds have recently made changes to their positions in the business. Ethic Inc. purchased a new stake in Paycom Software during the 2nd quarter valued at about $566,000. Aviva PLC increased its stake in Paycom Software by 65.2% in the 2nd quarter. Aviva PLC now owns 34,129 shares of the software maker’s stock worth $7,897,000 after purchasing an additional 13,473 shares during the period. United Asset Strategies Inc. bought a new stake in Paycom Software in the second quarter valued at approximately $877,000. Dillon & Associates Inc. boosted its stake in shares of Paycom Software by 10.9% during the third quarter. Dillon & Associates Inc. now owns 68,153 shares of the software maker’s stock valued at $14,176,000 after purchasing an additional 6,696 shares during the period. Finally, Allianz Asset Management GmbH grew its holdings in shares of Paycom Software by 10,106.6% in the third quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock worth $101,355,000 after purchasing an additional 482,186 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Up 0.6%

The firm’s fifty day moving average price is $151.02 and its 200-day moving average price is $184.86. The stock has a market cap of $6.72 billion, a P/E ratio of 14.77, a PEG ratio of 1.25 and a beta of 0.79.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results 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 business had revenue of $544.30 million during the quarter, compared to analysts’ expectations of $542.79 million. Paycom Software had a net margin of 22.10% and a return on equity of 24.21%. The firm’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.32 EPS. Sell-side analysts predict that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm 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 $0.375 dividend. The ex-dividend date of this dividend is Monday, March 9th. This represents a $1.50 annualized dividend and a dividend yield of 1.3%. Paycom Software’s dividend payout ratio (DPR) is presently 18.66%.

About Paycom Software

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.