Paycom Software (NYSE:PAYC) Share Price Crosses Below 50-Day Moving Average on Analyst Downgrade

Shares of Paycom Software, Inc. (NYSE:PAYC) passed below its 50-day moving average during trading on Friday after Citigroup lowered their price target on the stock from $279.00 to $264.00. The stock has a 50-day moving average of $238.29 and traded as low as $235.83. Citigroup currently has a neutral rating on the stock. Paycom Software shares last traded at $236.2090, with a volume of 1,243,020 shares traded.

Other analysts also recently issued reports about the stock. KeyCorp raised their price objective on shares of Paycom Software from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Thursday. UBS Group increased their price target on Paycom Software from $205.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. BMO Capital Markets increased their target price on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a research note on Thursday, August 6th. Weiss Ratings raised Paycom Software from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. Finally, Wall Street Zen downgraded shares of Paycom Software from a “buy” rating to a “hold” rating in a research note on Sunday, September 6th. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Paycom Software presently has a consensus rating of “Hold” and an average price target of $255.36.

Insider Transactions at Paycom Software

In other Paycom Software news, insider Shane Hadlock sold 241 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the sale, the insider owned 69,911 shares in the company, valued at approximately $16,783,533.77. This represents a 0.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 13.20% of the company’s stock.

Key Stories Impacting Paycom Software

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

• Positive Sentiment: Paycom beat third-quarter earnings expectations, with EPS of $3.37 versus the cited $2.76 consensus. Earnings growth, higher revenue, and margin gains were linked to wider adoption of automation; the company also raised its 2026 revenue and EBITDA guidance. Paycom Q3 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: KeyCorp raised its price target to $297 and maintained an overweight rating, signaling confidence in further upside. KeyCorp recommendations
• Positive Sentiment: Paycom declared its first cash dividend, adding a shareholder-return component to the investment case. Paycom declares its first cash dividend
• Neutral Sentiment: JPMorgan raised its target slightly, from $264 to $265, but kept a neutral rating. JPMorgan recommendations
• Negative Sentiment: BTIG downgraded PAYC from buy to neutral, a more cautious view that could pressure shares despite the earnings beat. BTIG Research recommendations
• Negative Sentiment: Citigroup cut its target from $279 to $264 and retained a neutral rating. Other coverage also raised questions about whether Paycom’s shares are fully valued after a strong run, tempering the positive results. Citigroup recommendations Paycom stock could be rich despite raised guidance

Institutional Trading of Paycom Software

A number of large investors have recently modified their holdings of PAYC. Fluent Financial LLC purchased a new stake in Paycom Software during the second quarter worth approximately $2,439,000. Principal Financial Group Inc. raised its stake in shares of Paycom Software by 290.5% during the 1st quarter. Principal Financial Group Inc. now owns 243,762 shares of the software maker’s stock worth $29,627,000 after buying an additional 181,346 shares in the last quarter. Greenwich Wealth Management LLC acquired a new stake in shares of Paycom Software in the second quarter valued at about $5,118,000. Corient Private Wealth LP acquired a new position in Paycom Software during the second quarter worth $10,803,000. Finally, Janus Henderson Group PLC lifted its holdings in shares of Paycom Software by 467.2% in the first quarter. Janus Henderson Group PLC now owns 23,200 shares of the software maker’s stock valued at $2,819,000 after purchasing an additional 19,110 shares in the last quarter. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Down 5.5%

The stock has a market cap of $10.65 billion, a price-to-earnings ratio of 22.63, a P/E/G ratio of 1.42 and a beta of 0.75. The firm’s 50 day moving average is $238.29 and its two-hundred day moving average is $166.73. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57.

Paycom Software (NYSE:PAYC) last released its earnings results on Wednesday, November 4th. The software maker reported $3.37 EPS for the quarter, beating the consensus estimate of $2.81 by $0.56. The company had revenue of $543.80 million during the quarter, compared to analysts’ expectations of $535.26 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The business’s revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.94 EPS. On average, sell-side analysts predict that Paycom Software, Inc. will post 10.80 EPS for the current year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 23rd will be issued a dividend of $0.3750 per share. The ex-dividend date of this dividend is Monday, November 23rd. This represents a $1.50 annualized dividend and a yield of 0.6%. Paycom Software’s payout ratio is presently 15.94%.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company’s software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.