Paycom Software (NYSE:PAYC) Stock Rated Underperform in New Coverage at Bank of America

02 Oct 2026, 06:02 by Tristan Rich · The Markets Daily

Bank of America assumed coverage on shares of Paycom Software (NYSE:PAYC – Free Report) in a research note issued to investors on Tuesday. The brokerage issued an underperform rating and a $200.00 target price on the software maker’s stock.

A number of other equities research analysts have also issued reports on the stock. Wall Street Zen lowered shares of Paycom Software from a “buy” rating to a “hold” rating in a report on Sunday, September 6th. JPMorgan Chase & Co. raised their price target on Paycom Software from $140.00 to $264.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 25th. BTIG Research lifted their price objective on shares of Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. UBS Group boosted their target price on Paycom Software from $205.00 to $285.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Finally, TD Cowen boosted their target price on shares of Paycom Software from $149.00 to $244.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Paycom Software presently has an average rating of “Hold” and a consensus target price of $213.93.

Read Our Latest Stock Analysis on Paycom Software

Paycom Software Price Performance

Shares of NYSE PAYC opened at $227.52 on Tuesday. The firm has a 50-day moving average of $213.50 and a two-hundred day moving average of $160.36. The company has a market capitalization of $10.25 billion, a price-to-earnings ratio of 24.18, a PEG ratio of 1.18 and a beta of 0.82. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software has a twelve month low of $104.90 and a twelve month high of $244.98.

Paycom Software (NYSE:PAYC – Get Free Report) last released its earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $513.12 million. During the same period in the previous year, the firm earned $2.06 EPS. The business’s revenue for the quarter was up 9.8% on a year-over-year basis. As a group, analysts expect that Paycom Software will post 10.64 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were issued a dividend of $0.3750 per share. The ex-dividend date was Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software’s payout ratio is presently 15.94%.

Insider Activity at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares of the company’s stock, valued at approximately $16,668,115.20. This represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 13.20% of the company’s stock.

Hedge Funds Weigh In On Paycom Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of Paycom Software during the 2nd quarter worth approximately $632,460,000. Reinhart Partners LLC. raised its stake in shares of Paycom Software by 20.1% in the second quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock valued at $153,320,000 after purchasing an additional 204,191 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Paycom Software by 5.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 552,470 shares of the software maker’s stock valued at $88,042,000 after purchasing an additional 27,069 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Paycom Software by 10.1% in the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker’s stock valued at $65,435,000 after purchasing an additional 49,460 shares in the last quarter. Finally, River Road Asset Management LLC lifted its position in Paycom Software by 481.9% in the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock worth $62,533,000 after purchasing an additional 324,970 shares during the period. 87.77% of the stock is currently owned by institutional investors.

About Paycom Software

(Get Free Report)

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.