Paycom Software (NYSE:PAYC) Price Target Raised to $195.00

Paycom Software (NYSE:PAYC) had its price objective increased by Cantor Fitzgerald from $135.00 to $195.00 in a research note released on Thursday morning,Benzinga reports. They currently have a neutral rating on the software maker’s stock.

A number of other brokerages have also recently weighed in on PAYC. BTIG Research raised their price target on Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a research report on Thursday. Mizuho boosted their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Barclays increased their price objective on shares of Paycom Software from $148.00 to $154.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded shares of Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, July 16th. Finally, TD Cowen dropped their target price on shares of Paycom Software from $154.00 to $149.00 and set a “buy” rating for the company in a report on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $204.69.

Paycom Software Stock Performance

PAYC opened at $214.52 on Thursday. Paycom Software has a 1-year low of $104.90 and a 1-year high of $234.60. The stock has a market cap of $10.22 billion, a P/E ratio of 22.80, a P/E/G ratio of 1.81 and a beta of 0.76. The stock’s 50 day simple moving average is $144.49 and its 200 day simple moving average is $134.69. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.08.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings data 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 firm had revenue of $531.20 million during the quarter, compared to analysts’ expectations of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.Paycom Software’s revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.06 earnings per share. As a group, equities analysts anticipate that Paycom Software will post 9.53 EPS for the current fiscal year.

Paycom Software Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be given a dividend of $0.375 per share. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 annualized dividend and a yield of 0.7%. Paycom Software’s dividend payout ratio (DPR) is presently 15.94%.

Institutional Trading of Paycom Software

Several institutional investors and hedge funds have recently made changes to their positions in PAYC. Brighton Jones LLC acquired a new stake in shares of Paycom Software during the fourth quarter valued at $638,000. AQR Capital Management LLC raised its stake in Paycom Software by 23.7% in 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 during the last quarter. United Services Automobile Association acquired a new position in Paycom Software in the 1st quarter valued at about $215,000. Empowered Funds LLC raised its stake in Paycom Software by 22.8% in the 1st quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock valued at $1,739,000 after purchasing an additional 1,480 shares during the last quarter. Finally, Focus Partners Wealth lifted its holdings in Paycom Software by 220.8% in the 1st quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock valued at $861,000 after purchasing an additional 2,712 shares in the last quarter. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting 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.