Paycom Software (NYSE:PAYC) Price Target Raised to $244.00 at TD Cowen

Paycom Software (NYSE:PAYC) had its target price raised by investment analysts at TD Cowen from $149.00 to $244.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the software maker’s stock. TD Cowen’s price objective suggests a potential upside of 12.75% from the company’s current price.

Several other equities analysts have also recently weighed in on the stock. Citigroup raised their price target on shares of Paycom Software from $120.00 to $136.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Guggenheim raised their target price on Paycom Software from $180.00 to $225.00 and gave the company a “buy” rating in a report on Thursday. Stifel Nicolaus lifted their target price on Paycom Software from $120.00 to $200.00 and gave the company a “hold” rating in a research report on Thursday. BMO Capital Markets upped their price target on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a report on Thursday. Finally, Barclays increased their price target on Paycom Software from $154.00 to $210.00 and gave the company an “equal weight” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat, Paycom Software has an average rating of “Hold” and an average price target of $200.23.

Paycom Software Stock Up 23.8%

NYSE PAYC traded up $41.60 during mid-day trading on Thursday, hitting $216.40. The company’s stock had a trading volume of 3,309,190 shares, compared to its average volume of 1,353,007. The company’s 50 day simple moving average is $141.40 and its 200 day simple moving average is $133.66. Paycom Software has a twelve month low of $104.90 and a twelve month high of $248.95. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $10.31 billion, a price-to-earnings ratio of 24.77, a PEG ratio of 1.49 and a beta of 0.76.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The business’s revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.06 earnings per share. Analysts anticipate that Paycom Software will post 9.37 earnings per share for the current year.

Institutional Trading of Paycom Software

Hedge funds and other institutional investors have recently modified their holdings of the business. Brown Brothers Harriman & Co. boosted its holdings in Paycom Software by 190.6% in 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 during the period. Clearstead Advisors LLC raised its holdings in Paycom Software by 140.3% during the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock valued at $26,000 after acquiring an additional 94 shares during the period. CYBER HORNET ETFs LLC bought a new stake in Paycom Software during the 2nd quarter valued at $29,000. MUFG Securities EMEA plc purchased a new stake in shares of Paycom Software during the second quarter worth $33,000. Finally, Palisade Asset Management LLC bought a new position in shares of Paycom Software in the third quarter worth $33,000. 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: Q2 beat expectations: Revenue rose 9.8% year over year to $531.2 million, exceeding the $513.1 million consensus estimate. Non-GAAP earnings of $2.78 per diluted share also surpassed expectations and increased from $2.06 a year earlier. Paycom Q2 2026 Results
• Positive Sentiment: Higher 2026 guidance: Management raised its full-year revenue outlook to $2.197 billion–$2.212 billion and adjusted EBITDA guidance to $1.007 billion–$1.022 billion. The improved forecast reflects recurring sales growth, product expansion and expected benefits from automation and internally hosted AI models. Paycom 2026 Forecast
• Positive Sentiment: Capital returns and margins supported sentiment: Paycom repurchased approximately 2.57 million shares for $345.9 million during the quarter, while expanding margins and anticipated free cash flow above $650 million highlighted operating leverage. Paycom Q2 Earnings Call Takeaways
• Positive Sentiment: Analysts lifted targets: BTIG raised its target to $230 and maintained a buy rating, while KeyCorp increased its target to $270 and assigned an overweight rating. These revisions suggest some analysts view the earnings and outlook improvements as warranting a higher valuation. Analyst Forecast Revisions
• Neutral Sentiment: Analyst reactions were mixed: Barclays, BMO Capital Markets, Stifel and Cantor Fitzgerald raised their targets but retained equal-weight, market-perform, hold or neutral ratings.
• Negative Sentiment: The stock’s sharp move has placed it above several revised targets, including Barclays’ $210, BMO’s $208 and Stifel’s $200, suggesting valuation and near-term upside may be more limited for cautious investors.

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.