Paycom Software (NYSE:PAYC) Price Target Raised to $230.00

Paycom Software (NYSE:PAYC) had its target price increased by BTIG Research from $160.00 to $230.00 in a research report report published on Thursday, MarketBeat.com reports. The brokerage currently has a buy rating on the software maker’s stock.

PAYC has been the subject of several other reports. Mizuho boosted their target price on Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. TD Cowen decreased their price objective on Paycom Software from $154.00 to $149.00 and set a “buy” rating for the company in a research note on Friday, June 26th. BMO Capital Markets lifted their price objective on Paycom Software from $145.00 to $208.00 and gave the company a “market perform” rating in a research note on Thursday. Zacks Research upgraded shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. Finally, Weiss Ratings raised shares of Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, Paycom Software currently has a consensus rating of “Hold” and an average price target of $204.69.

Paycom Software Stock Performance

Shares of PAYC stock opened at $214.52 on Thursday. 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 has a 52 week low of $104.90 and a 52 week high of $234.60. The stock has a market capitalization of $10.22 billion, a PE ratio of 22.80, a P/E/G ratio of 1.81 and a beta of 0.76. The firm has a 50 day moving average of $144.49 and a two-hundred day moving average of $134.69.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. During the same quarter in the previous year, the firm posted $2.06 earnings per share. The company’s quarterly revenue was up 9.8% compared to the same quarter last year. On average, research analysts predict that Paycom Software will post 9.53 EPS 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. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, August 24th. Paycom Software’s dividend payout ratio is currently 15.94%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Equity Investment Corp acquired a new position in shares of Paycom Software in the 2nd quarter valued at $37,085,000. Meeder Advisory Services Inc. acquired a new stake in Paycom Software during the 2nd quarter worth $283,000. MidFirst Bank acquired a new stake in Paycom Software during the 2nd quarter worth $633,000. BlackRock Inc. purchased a new stake in Paycom Software in the second quarter valued at $632,460,000. Finally, Deutsche Bank AG purchased a new stake in Paycom Software in the second quarter valued at $1,268,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software News Roundup

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.