Citigroup Raises Paycom Software (NYSE:PAYC) Price Target to $194.00

Paycom Software (NYSE:PAYC) had its price objective raised by equities researchers at Citigroup from $136.00 to $194.00 in a report released on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the software maker’s stock. Citigroup’s price target points to a potential downside of 9.57% from the stock’s current price.

PAYC has been the topic of a number of other reports. Zacks Research upgraded shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. Cantor Fitzgerald upped their target price on Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a report on Thursday. TD Cowen increased their target price on Paycom Software from $149.00 to $244.00 and gave the company a “buy” rating in a research report on Thursday. Stifel Nicolaus lifted their price target on Paycom Software from $120.00 to $200.00 and gave the company a “hold” rating in a report on Thursday. Finally, KeyCorp lifted their price target on Paycom Software from $195.00 to $270.00 and gave the company an “overweight” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Paycom Software presently has a consensus rating of “Hold” and an average price target of $204.69.

Paycom Software Stock Down 0.7%

Shares of PAYC stock traded down $1.45 on Friday, hitting $214.52. The stock had a trading volume of 1,267,230 shares, compared to its average volume of 1,357,026. Paycom Software has a one year low of $104.90 and a one year high of $234.60. The business has a 50 day moving average price of $143.00 and a 200 day moving average price of $134.13. The company has a market cap of $10.22 billion, a PE ratio of 22.80, a P/E/G ratio of 1.48 and a beta of 0.76. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million for the quarter, compared to analysts’ expectations of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 31.53%. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.06 EPS. Research analysts anticipate that Paycom Software will post 9.37 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Paycom Software

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in Paycom Software in the second quarter worth $632,460,000. Deutsche Bank AG acquired a new stake in shares of Paycom Software in the 2nd quarter worth $1,268,000. Phillips Wealth Planners LLC acquired a new stake in shares of Paycom Software in the 2nd quarter worth $222,000. Trust Co. of Vermont purchased a new position in Paycom Software during the 2nd quarter worth $40,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Paycom Software during the 2nd quarter valued at about $33,000. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Paycom Software

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

• Positive Sentiment: Q2 results exceeded expectations: Paycom reported $531.2 million in revenue, up 9.8% year over year, and $2.78 in non-GAAP EPS, beating consensus estimates. Recurring sales growth and expanding margins added to the positive reaction. Paycom’s Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its 2026 forecast: Paycom now expects revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. Free cash flow is expected to exceed $650 million, supporting the improved earnings outlook. Paycom forecasts 2026 revenue and EBITDA
• Positive Sentiment: Automation and AI are improving profitability: Management highlighted savings from automation, internally hosted AI models, and new product releases as drivers of operating leverage and demand for Paycom’s employee-management services. Paycom raises annual forecast on AI-driven demand
• Positive Sentiment: Analysts lifted price targets: KeyBanc raised its target to $270 with an overweight rating, while TD Cowen raised its target to $244 and upgraded the stock to buy. BTIG also increased its target to $230 and maintained a buy rating. Paycom Software analysts boost forecasts
• Neutral Sentiment: Capital returns remain supportive: Paycom repurchased roughly 2.57 million shares for $345.9 million during the quarter, which may enhance per-share results but also reflects substantial cash deployment.
• Negative Sentiment: Some analysts remain cautious at the higher valuation: Barclays, BMO, Stifel, UBS, and Cantor Fitzgerald raised targets but retained neutral or hold-equivalent ratings, with targets ranging from $195 to $210—below the recent market level. Mixed institutional positioning also suggests not all investors share the bullish view.

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.