BMO Capital Markets Has Lowered Expectations for Paycom Software (NYSE:PAYC) Stock Price

Paycom Software (NYSE:PAYC) had its target price dropped by equities researchers at BMO Capital Markets from $175.00 to $137.00 in a report released on Thursday, MarketBeat reports. The brokerage currently has a “market perform” rating on the software maker’s stock. BMO Capital Markets’ price target suggests a potential upside of 9.11% from the company’s current price.

A number of other equities analysts have also recently issued reports on the company. Cantor Fitzgerald cut their price target on Paycom Software from $170.00 to $135.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Mizuho cut their target price on shares of Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a research note on Thursday, November 6th. BTIG Research began coverage on shares of Paycom Software in a research note on Wednesday, December 17th. They issued a “buy” rating and a $195.00 price target for the company. UBS Group cut their price objective on shares of Paycom Software from $245.00 to $210.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Finally, KeyCorp decreased their target price on Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research report on Thursday, November 6th. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $168.57.

Paycom Software Trading Up 4.8%

Shares of Paycom Software stock opened at $125.56 on Thursday. The business has a 50-day moving average price of $150.22 and a two-hundred day moving average price of $184.09. Paycom Software has a 1-year low of $104.90 and a 1-year high of $267.76. The company has a market cap of $7.07 billion, a P/E ratio of 15.52, a PEG ratio of 1.25 and a beta of 0.79.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings data on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.01. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The company had revenue of $544.30 million for the quarter, compared to the consensus estimate of $542.79 million. During the same period in the previous year, the business earned $2.32 EPS. The firm’s revenue was up 10.2% compared to the same quarter last year. Equities research analysts forecast that Paycom Software will post 7.15 EPS for the current fiscal year.

Insider Activity

In related news, CFO Robert D. Foster sold 1,300 shares of Paycom Software stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total transaction of $211,458.00. Following the transaction, the chief financial officer owned 14,747 shares of the company’s stock, valued at $2,398,747.02. The trade was a 8.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 10.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Paycom Software

Several large investors have recently bought and sold shares of PAYC. CYBER HORNET ETFs LLC purchased a new stake in shares of Paycom Software in the second quarter valued at about $29,000. Caitlin John LLC bought a new stake in Paycom Software in the 3rd quarter worth about $29,000. MUFG Securities EMEA plc bought a new stake in Paycom Software in the 2nd quarter worth about $33,000. Steigerwald Gordon & Koch Inc. purchased a new stake in Paycom Software in the 3rd quarter valued at about $31,000. Finally, Brown Brothers Harriman & Co. lifted its position in shares of Paycom Software by 190.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock worth $25,000 after buying an additional 101 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors.

More Paycom Software News

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

• Positive Sentiment: Q4 results topped estimates: PAYC reported $2.45 EPS and revenue up ~10% y/y, beating consensus and showing margin expansion — supportive near‑term fundamentals. Article Title
• Positive Sentiment: Independent study highlights product ROI: A Forrester‑commissioned study found Paycom’s IWant AI delivers significant three‑year ROI for clients — a credibility boost for growth/product story. Article Title
• Positive Sentiment: Some analysts remain bullish: Guggenheim, KeyCorp and BTIG maintained buy/overweight views (despite trimming targets), signaling pockets of conviction that upside remains for longer‑term investors. Article Title
• Neutral Sentiment: Market commentary and idea pieces: Several outlets (Zacks, Seeking Alpha, Barchart) frame PAYC as a potential value/recovery play after the selloff — useful for investors assessing risk/reward but not immediate catalysts. Article Title
• Negative Sentiment: Weak 2026 revenue guidance spooked investors: Paycom’s FY‑2026 revenue outlook was perceived as conservative/short of consensus, which triggered the initial selloff and remains the primary negative catalyst. Article Title
• Negative Sentiment: Multiple analyst price‑target cuts and neutral/hold moves: Several firms (Citigroup, Jefferies, Cantor Fitzgerald, Mizuho, BMO and others) lowered targets and moved to neutral/hold — increasing selling pressure and signaling reduced near‑term expectations. Article Title
• Negative Sentiment: Shares reached a fresh near‑term low after guidance and analyst reactions, amplifying momentum selling and headline sensitivity. Article Title

About Paycom Software

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.