Zacks Research Forecasts Higher Earnings for Paycom Software

Paycom Software, Inc. (NYSE:PAYC) – Equities research analysts at Zacks Research raised their Q1 2025 earnings per share (EPS) estimates for Paycom Software in a report issued on Wednesday, March 5th. Zacks Research analyst R. Department now forecasts that the software maker will post earnings per share of $2.36 for the quarter, up from their previous forecast of $2.29. 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 Q2 2025 earnings at $1.51 EPS, Q3 2025 earnings at $1.62 EPS, Q4 2025 earnings at $2.06 EPS, FY2025 earnings at $7.56 EPS, Q1 2026 earnings at $2.34 EPS, Q2 2026 earnings at $1.69 EPS, Q3 2026 earnings at $1.88 EPS, Q4 2026 earnings at $2.14 EPS, FY2026 earnings at $8.05 EPS and FY2027 earnings at $10.01 EPS.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Wednesday, February 12th. The software maker reported $2.02 EPS for the quarter, beating the consensus estimate of $1.99 by $0.03. Paycom Software had a return on equity of 33.53% and a net margin of 26.66%.

Other equities research analysts have also recently issued reports about the company. Citigroup dropped their price objective on Paycom Software from $234.00 to $221.00 and set a “neutral” rating on the stock in a research report on Thursday, January 16th. Piper Sandler increased their price objective on Paycom Software from $191.00 to $224.00 and gave the company a “neutral” rating in a research report on Friday, February 14th. KeyCorp raised Paycom Software from a “sector weight” rating to an “overweight” rating and set a $245.00 price objective on the stock in a research report on Monday. TD Cowen raised their target price on Paycom Software from $193.00 to $248.00 and gave the stock a “hold” rating in a research report on Monday, December 9th. Finally, JPMorgan Chase & Co. raised their target price on Paycom Software from $185.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, February 13th. Twelve research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, Paycom Software currently has an average rating of “Hold” and an average target price of $212.80.

Paycom Software Price Performance

Paycom Software stock opened at $206.86 on Monday. Paycom Software has a one year low of $139.50 and a one year high of $242.74. The stock has a market capitalization of $11.85 billion, a PE ratio of 23.24, a price-to-earnings-growth ratio of 2.40 and a beta of 1.14. The business’s fifty day moving average is $208.89 and its 200 day moving average is $198.89.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 24th. Stockholders of record on Monday, March 10th will be given a dividend of $0.375 per share. The ex-dividend date is Monday, March 10th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.73%. Paycom Software’s payout ratio is currently 16.85%.

Insider Activity

In related news, Director J C. Watts, Jr. sold 500 shares of Paycom Software stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $218.22, for a total transaction of $109,110.00. Following the sale, the director now owns 7,730 shares of the company’s stock, valued at approximately $1,686,840.60. This trade represents a 6.08 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Randall Peck sold 3,600 shares of Paycom Software stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $212.19, for a total value of $763,884.00. Following the sale, the chief operating officer now directly owns 50,665 shares in the company, valued at $10,750,606.35. This trade represents a 6.63 % decrease in their position. The disclosure for this sale can be found here. Insiders own 14.50% of the company’s stock.

Institutional Trading of Paycom Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Glass Jacobson Investment Advisors llc raised its stake in Paycom Software by 746.7% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker’s stock valued at $26,000 after purchasing an additional 112 shares during the period. Brooklyn Investment Group bought a new stake in Paycom Software in the 3rd quarter worth approximately $28,000. Pin Oak Investment Advisors Inc. increased its stake in Paycom Software by 73.3% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 182 shares of the software maker’s stock worth $30,000 after acquiring an additional 77 shares during the last quarter. Murphy & Mullick Capital Management Corp bought a new stake in Paycom Software in the 4th quarter worth approximately $30,000. Finally, First Horizon Advisors Inc. increased its stake in Paycom Software by 821.7% in the 3rd quarter. First Horizon Advisors Inc. now owns 212 shares of the software maker’s stock worth $35,000 after acquiring an additional 189 shares during the last quarter. Institutional investors 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.