Paycom Software (NYSE:PAYC) Price Target Raised to $205.00

Paycom Software (NYSE:PAYC) had its price target raised by UBS Group from $195.00 to $205.00 in a report published on Thursday morning,Benzinga reports. UBS Group currently has a buy rating on the software maker’s stock.

Other analysts have also issued reports about the stock. KeyCorp upped their price target on shares of Paycom Software from $195.00 to $270.00 and gave the stock an “overweight” rating in a research note on Thursday. Barclays boosted their target price on Paycom Software from $154.00 to $210.00 and gave the stock an “equal weight” rating in a report on Thursday. Zacks Research upgraded Paycom Software from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. TD Cowen cut their target price on Paycom Software from $154.00 to $149.00 and set a “buy” rating for the company in a research report on Friday, June 26th. Finally, Weiss Ratings raised Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Paycom Software presently has a consensus rating of “Hold” and a consensus price target of $204.69.

Paycom Software Stock Performance

PAYC stock opened at $214.52 on Thursday. The company has a market capitalization of $10.22 billion, a P/E ratio of 22.80, a PEG ratio of 1.81 and a beta of 0.76. The company has a 50-day simple moving average of $144.49 and a 200 day simple moving average of $134.69. Paycom Software has a fifty-two week low of $104.90 and a fifty-two week high of $234.60. The company has a quick ratio of 1.08, a current ratio of 1.07 and a debt-to-equity ratio of 1.57.

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 analysts’ consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. Paycom Software’s revenue was up 9.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.06 EPS. 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 dividend of $0.375 per share. The ex-dividend date is Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software’s dividend payout ratio (DPR) is 15.94%.

Institutional Trading of Paycom Software

A number of hedge funds and other institutional investors have recently made changes to their positions in PAYC. Brown Brothers Harriman & Co. boosted its holdings in Paycom Software by 190.6% during the fourth 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. Clearstead Advisors LLC grew its position in Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock worth $26,000 after buying an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC bought a new position in shares of Paycom Software in the second quarter valued at $29,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Paycom Software in the second quarter valued at $33,000. Finally, MUFG Securities EMEA plc acquired a new stake in shares of Paycom Software during the 2nd quarter valued at $33,000. 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: 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.

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.