Zacks Research Lowers Earnings Estimates for Paycom Software

Paycom Software, Inc. (NYSE:PAYC) – Analysts at Zacks Research dropped their Q2 2025 earnings per share (EPS) estimates for Paycom Software in a research note issued to investors on Wednesday, May 28th. Zacks Research analyst R. Department now forecasts that the software maker will post earnings per share of $1.45 for the quarter, down from their prior estimate of $1.51. 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 Q3 2025 earnings at $1.61 EPS, Q4 2025 earnings at $2.08 EPS, FY2025 earnings at $7.64 EPS, Q1 2026 earnings at $2.67 EPS, Q2 2026 earnings at $1.70 EPS, Q3 2026 earnings at $1.86 EPS, Q4 2026 earnings at $2.28 EPS, FY2026 earnings at $8.52 EPS and Q1 2027 earnings at $3.00 EPS.

Other analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Paycom Software from a “buy” rating to a “hold” rating in a report on Tuesday, March 4th. KeyCorp increased their price objective on Paycom Software from $245.00 to $270.00 and gave the company an “overweight” rating in a research report on Thursday, May 8th. Barclays boosted their target price on Paycom Software from $221.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 8th. Stifel Nicolaus raised their price target on Paycom Software from $187.00 to $215.00 and gave the company a “hold” rating in a report on Thursday, May 8th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Paycom Software in a research report on Thursday, May 8th. Eleven equities research 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 presently has an average rating of “Hold” and a consensus price target of $226.90.

Paycom Software Trading Up 1.3%

Shares of NYSE PAYC opened at $259.13 on Monday. Paycom Software has a 1-year low of $139.50 and a 1-year high of $262.80. The company has a 50-day moving average of $231.35 and a two-hundred day moving average of $220.66. The company has a market cap of $14.99 billion, a PE ratio of 29.12, a P/E/G ratio of 2.40 and a beta of 0.80.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings results on Wednesday, May 7th. The software maker reported $2.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.62 by $0.18. The business had revenue of $530.50 million for the quarter, compared to the consensus estimate of $522.92 million. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%. The firm’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.59 EPS.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 9th. Stockholders of record on Tuesday, May 27th will be given a $0.375 dividend. The ex-dividend date is Tuesday, May 27th. This represents a $1.50 annualized dividend and a dividend yield of 0.58%. Paycom Software’s dividend payout ratio is currently 21.40%.

Insider Buying and Selling

In other news, CEO Chad R. Richison sold 26,426 shares of the company’s stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $255.52, for a total value of $6,752,371.52. Following the completion of the sale, the chief executive officer now directly owns 3,277,249 shares of the company’s stock, valued at $837,402,664.48. This represents a 0.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Bradley Scott Smith sold 3,000 shares of the stock in a transaction that occurred on Thursday, March 13th. The shares were sold at an average price of $201.01, for a total transaction of $603,030.00. Following the completion of the sale, the insider now owns 28,733 shares in the company, valued at $5,775,620.33. This represents a 9.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 149,426 shares of company stock valued at $36,577,802 over the last three months. Company insiders own 10.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of PAYC. Glass Jacobson Investment Advisors llc raised its holdings in Paycom Software by 746.7% in the fourth quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker’s stock worth $26,000 after purchasing an additional 112 shares during the period. von Borstel & Associates Inc. acquired a new stake in Paycom Software during the 1st quarter worth $27,000. SouthState Corp bought a new position in Paycom Software during the first quarter worth about $27,000. Murphy & Mullick Capital Management Corp bought a new position in Paycom Software during the fourth quarter worth about $30,000. Finally, Golden State Wealth Management LLC grew its stake in Paycom Software by 112.3% in the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker’s stock valued at $30,000 after acquiring an additional 73 shares during the period. Institutional investors and hedge funds own 87.77% of the company’s stock.

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.