In the preceding three months, 17 analysts have released ratings for Paycom Software (NYSE:PAYC), presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 1 11 0 0
Last 30D 0 0 2 0 0
1M Ago 2 1 6 0 0
2M Ago 2 0 2 0 0
3M Ago 1 0 1 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $156.71, a high estimate of $210.00, and a low estimate of $115.00. Highlighting a 15.75% decrease, the current average has fallen from the previous average price target of $186.00.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Paycom Software among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Matthew Vanvliet Cantor Fitzgerald Raises Neutral $135.00 $115.00
Raimo Lenschow Barclays Raises Equal-Weight $150.00 $140.00
Steven Enders Citigroup Lowers Neutral $128.00 $185.00
Samad Samana Jefferies Lowers Hold $130.00 $190.00
Daniel Jester BMO Capital Lowers Market Perform $137.00 $175.00
Jacob Smith Guggenheim Lowers Buy $180.00 $210.00
Matthew Vanvliet Cantor Fitzgerald Lowers Neutral $115.00 $135.00
Raimo Lenschow Barclays Lowers Equal-Weight $140.00 $185.00
Jason Celino Keybanc Lowers Overweight $195.00 $250.00
Siti Panigrahi Mizuho Lowers Neutral $120.00 $180.00
Allan Verkhovski BTIG Lowers Buy $140.00 $195.00
Matthew Vanvliet Cantor Fitzgerald Lowers Neutral $135.00 $170.00
Kevin Mcveigh UBS Lowers Buy $210.00 $245.00
Raimo Lenschow Barclays Lowers Equal-Weight $185.00 $210.00
Jared Levine TD Cowen Lowers Buy $184.00 $200.00
Steven Enders Citigroup Lowers Neutral $185.00 $191.00
Allan Verkhovski BTIG Announces Buy $195.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Paycom Software. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Paycom Software compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Paycom Software's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Paycom Software's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Paycom Software analyst ratings.

Get to Know Paycom Software Better

Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, human resources management, and time and labor. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds.

Financial Milestones: Paycom Software's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Paycom Software displayed positive results in 3M. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 9.16%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Paycom Software's net margin excels beyond industry benchmarks, reaching 22.44%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Paycom Software's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.31%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Paycom Software's ROA excels beyond industry benchmarks, reaching 2.68%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.05, Paycom Software adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.