Citigroup Forecasts Strong Price Appreciation for Paycom Software (NYSE:PAYC) Stock

Paycom Software (NYSE:PAYC) had its price objective lifted by investment analysts at Citigroup from $120.00 to $136.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the software maker’s stock. Citigroup’s target price would suggest a potential downside of 1.72% from the stock’s previous close.

A number of other analysts have also recently commented on the stock. KeyCorp lowered their target price on shares of Paycom Software from $250.00 to $195.00 and set an “overweight” rating for the company in a research note on Thursday, February 12th. Zacks Research upgraded shares of Paycom Software from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 18th. Cantor Fitzgerald upped their target price on Paycom Software from $115.00 to $135.00 and gave the company a “neutral” rating in a research report on Friday, March 6th. Mizuho lifted their price target on Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Jefferies Financial Group dropped their price target on Paycom Software from $190.00 to $130.00 and set a “hold” rating on the stock in a research note on Thursday, February 12th. Five investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $169.79.

Paycom Software Stock Up 9.5%

Shares of Paycom Software stock traded up $12.02 during trading on Thursday, reaching $138.38. The company’s stock had a trading volume of 2,189,200 shares, compared to its average volume of 1,617,708. Paycom Software has a 1-year low of $104.90 and a 1-year high of $267.76. The company has a 50-day simple moving average of $125.45 and a two-hundred day simple moving average of $146.62. The company has a market cap of $6.60 billion, a price-to-earnings ratio of 17.11, a P/E/G ratio of 1.39 and a beta of 0.77.

Paycom Software (NYSE:PAYC) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, beating analysts’ consensus estimates of $2.99 by $0.16. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The company had revenue of $571.80 million during the quarter, compared to analysts’ expectations of $564.37 million. During the same period last year, the business posted $2.80 earnings per share. The firm’s revenue was up 7.8% compared to the same quarter last year. As a group, analysts anticipate that Paycom Software will post 8.59 earnings per share for the current year.

Institutional Investors Weigh In On Paycom Software

Hedge funds have recently bought and sold shares of the stock. True Wealth Design LLC grew its position in Paycom Software by 946.7% during the fourth quarter. True Wealth Design LLC now owns 157 shares of the software maker’s stock valued at $25,000 after buying an additional 142 shares during the period. Brown Brothers Harriman & Co. raised its position in shares of Paycom Software by 190.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock worth $25,000 after acquiring an additional 101 shares during the period. Clearstead Advisors LLC boosted its stake in shares of Paycom Software by 140.3% during the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock worth $26,000 after acquiring an additional 94 shares in the last quarter. Caitlin John LLC purchased a new stake in shares of Paycom Software during the 3rd quarter worth about $29,000. Finally, CYBER HORNET ETFs LLC acquired a new stake in shares of Paycom Software during the 2nd quarter valued at about $29,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Key Stories Impacting Paycom Software

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

• Positive Sentiment: Q1 results beat and outlook reaffirmed — PAYC reported revenue up ~7.8% Y/Y, expanded margins and topped some EPS/revenue estimates; management reaffirmed 2026 revenue and adjusted‑EBITDA targets. Paycom’s Q1 Earnings Surpass Expectations
• Positive Sentiment: Board approved a new $2 billion buyback and announced a dividend — a large buyback plus dividend signals strong cash return policy that can support the share price. Paycom reaffirms 2026 revenue and approves $2B buyback
• Positive Sentiment: Several analyst price‑target raises and buy ratings — TD Cowen and BTIG lifted targets and reiterated buy views, and BMO raised its target (mixed labels but generally supportive). These actions add buy‑side momentum. Analyst coverage (Benzinga) BMO Capital Markets note
• Neutral Sentiment: Mizuho raised its price target to $130 but kept a neutral rating — the new target sits below the current price, so the note is mixed in impact. Mizuho note (Benzinga)
• Neutral Sentiment: Full earnings materials and call transcript available — useful for digging into churn, RPO, client metrics and margin drivers before placing longer‑term bets. Earnings call transcript Press release
• Negative Sentiment: Barclays trimmed its target to $148 and moved to “equal weight” — a more cautious view from a large house may limit upside in the near term. Barclays note (Benzinga)
• Negative Sentiment: Some reports showed differing EPS figures (adjusted vs. GAAP), creating short‑term confusion — one publication flagged an EPS miss vs. consensus, which can add volatility as investors reconcile metrics. MarketBeat earnings note

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.