Paycom Software (NYSE:PAYC) Price Target Raised to $208.00

Paycom Software (NYSE:PAYC) had its price target raised by BMO Capital Markets from $145.00 to $208.00 in a research note published on Thursday, MarketBeat reports. BMO Capital Markets currently has a market perform rating on the software maker’s stock.

A number of other equities research analysts have also recently weighed in on PAYC. Weiss Ratings upgraded Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. BTIG Research lifted their target price on Paycom Software from $140.00 to $160.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Barclays boosted their target price on shares of Paycom Software from $148.00 to $154.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 21st. Zacks Research raised shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. Finally, Mizuho raised their price target on shares of Paycom Software from $120.00 to $130.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, Paycom Software currently has a consensus rating of “Hold” and an average price target of $204.69.

Paycom Software Stock Performance

Shares of NYSE:PAYC opened at $214.52 on Thursday. The firm has a 50 day moving average of $144.49 and a 200 day moving average of $134.69. The company has a quick ratio of 1.08, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The company has a market capitalization of $10.22 billion, a price-to-earnings ratio of 22.80, a price-to-earnings-growth ratio of 1.81 and a beta of 0.76. Paycom Software has a 52 week low of $104.90 and a 52 week high of $234.60.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The business had revenue of $531.20 million for the quarter, compared to analysts’ expectations of $513.12 million. During the same quarter last year, the firm earned $2.06 EPS. The business’s revenue for the quarter was up 9.8% on a year-over-year basis. On average, sell-side analysts predict that Paycom Software will post 9.53 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PAYC. Brown Brothers Harriman & Co. raised its stake in Paycom Software by 190.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock valued at $25,000 after buying an additional 101 shares during the last quarter. Clearstead Advisors LLC grew its stake in shares of Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock worth $26,000 after acquiring an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new stake in shares of Paycom Software during the second quarter worth about $29,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paycom Software during the second quarter valued at about $33,000. Finally, MUFG Securities EMEA plc acquired a new position in shares of Paycom Software during the second quarter valued at about $33,000. 87.77% of the stock is owned by institutional investors and hedge funds.

More Paycom Software News

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.