Zacks Research Forecasts Higher Earnings for Paycom Software

Paycom Software, Inc. (NYSE:PAYC) – Analysts at Zacks Research raised their Q1 2025 earnings per share estimates for shares of Paycom Software in a report issued on Wednesday, March 5th. Zacks Research analyst R. Department now expects that the software maker will post earnings of $2.36 per share for the quarter, up from their prior forecast of $2.29. 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 Q2 2025 earnings at $1.51 EPS, Q3 2025 earnings at $1.62 EPS, Q4 2025 earnings at $2.06 EPS, FY2025 earnings at $7.56 EPS, Q1 2026 earnings at $2.34 EPS, Q2 2026 earnings at $1.69 EPS, Q3 2026 earnings at $1.88 EPS, Q4 2026 earnings at $2.14 EPS, FY2026 earnings at $8.05 EPS and FY2027 earnings at $10.01 EPS.

Several other equities analysts also recently weighed in on the company. StockNews.com downgraded Paycom Software from a “buy” rating to a “hold” rating in a research report on Tuesday, March 4th. Mizuho boosted their price objective on Paycom Software from $190.00 to $210.00 and gave the company a “neutral” rating in a report on Friday, December 13th. Barclays dropped their price objective on Paycom Software from $229.00 to $221.00 and set an “equal weight” rating for the company in a report on Thursday, January 23rd. TD Cowen boosted their price objective on Paycom Software from $193.00 to $248.00 and gave the company a “hold” rating in a report on Monday, December 9th. Finally, KeyCorp upgraded Paycom Software from a “sector weight” rating to an “overweight” rating and set a $245.00 price objective for the company in a report on Monday. Twelve analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $212.80.

Paycom Software Stock Performance

NYSE PAYC opened at $206.86 on Monday. The company has a market cap of $11.85 billion, a P/E ratio of 23.24, a P/E/G ratio of 2.40 and a beta of 1.14. The business’s 50 day moving average price is $208.89 and its 200-day moving average price is $198.89. Paycom Software has a fifty-two week low of $139.50 and a fifty-two week high of $242.74.

Paycom Software (NYSE:PAYC) last released its earnings results on Wednesday, February 12th. The software maker reported $2.02 earnings per share for the quarter, beating the consensus estimate of $1.99 by $0.03. Paycom Software had a return on equity of 33.53% and a net margin of 26.66%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sylebra Capital LLC increased its holdings in shares of Paycom Software by 63.8% in the fourth 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 period. FMR LLC increased its holdings in shares of Paycom Software by 137.8% in the fourth quarter. FMR LLC now owns 2,396,452 shares of the software maker’s stock valued at $491,201,000 after purchasing an additional 1,388,533 shares during the period. Geode Capital Management LLC increased its holdings in shares of Paycom Software by 6.3% in the fourth quarter. Geode Capital Management LLC now owns 1,516,768 shares of the software maker’s stock valued at $310,245,000 after purchasing an additional 89,848 shares during the period. Northern Trust Corp increased its holdings in shares of Paycom Software by 10.9% in the fourth quarter. Northern Trust Corp now owns 724,016 shares of the software maker’s stock valued at $148,402,000 after purchasing an additional 70,897 shares during the period. Finally, BNP PARIBAS ASSET MANAGEMENT Holding S.A. increased its holdings in shares of Paycom Software by 1.0% in the third quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 627,510 shares of the software maker’s stock valued at $104,524,000 after purchasing an additional 6,488 shares during the period. 87.77% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Paycom Software

In related news, COO Randall Peck sold 3,600 shares of the company’s stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $212.19, for a total transaction of $763,884.00. Following the transaction, the chief operating officer now directly owns 50,665 shares of the company’s stock, valued at $10,750,606.35. This represents a 6.63 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director J C. Watts, Jr. sold 500 shares of the company’s stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $218.22, for a total value of $109,110.00. Following the transaction, the director now directly owns 7,730 shares in the company, valued at $1,686,840.60. This represents a 6.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 14.50% of the company’s stock.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 24th. Shareholders of record on Monday, March 10th will be issued a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.73%. The ex-dividend date is Monday, March 10th. Paycom Software’s dividend payout ratio is 16.85%.

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.