Should You Invest in Paycom Software Inc (PAYC) Now?

Paycom Software Inc (NYSE: PAYC) has a higher price-to-earnings ratio of 24.31x compared to its average ratio, The 36-month beta value for PAYC is at 1.14. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 17 as “hold,” and 0 as “sell.”

The public float for PAYC is 50.38M, and currently, shorts hold a 3.64% of that float. The average trading volume for PAYC on February 28, 2025 was 567.34K shares.

PAYC) stock’s latest price update

Paycom Software Inc (NYSE: PAYC)’s stock price has decreased by -1.54 compared to its previous closing price of 219.74. However, the company has seen a 0.91% increase in its stock price over the last five trading sessions. marketbeat.com reported 2025-02-25 that The entire stock market seems to be centered around the technology sector today, going after the ever-increasing valuations and growth projections seen in the artificial intelligence space and its support areas, such as semiconductors and chip makers. However, there is another area that hasn’t gotten too much attention lately.

PAYC’s Market Performance

PAYC’s stock has risen by 0.91% in the past week, with a monthly rise of 1.22% and a quarterly drop of -6.07%. The volatility ratio for the week is 2.60% while the volatility levels for the last 30 days are 3.13% for Paycom Software Inc The simple moving average for the last 20 days is 2.97% for PAYC stock, with a simple moving average of 18.54% for the last 200 days.

Analysts’ Opinion of PAYC

Jefferies, on the other hand, stated in their research note that they expect to see PAYC reach a price target of $195. The rating they have provided for PAYC stocks is “Hold” according to the report published on January 05th, 2024.

UBS gave a rating of “Buy” to PAYC, setting the target price at $235 in the report published on November 07th of the previous year.

PAYC Trading at 3.30% from the 50-Day Moving Average

After a stumble in the market that brought PAYC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -10.87% of loss for the given period.

Volatility was left at 3.13%, however, over the last 30 days, the volatility rate increased by 2.60%, as shares surge +4.79% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.85% lower at present.

During the last 5 trading sessions, PAYC rose by +0.91%, which changed the moving average for the period of 200-days by +24.64% in comparison to the 20-day moving average, which settled at $210.11. In addition, Paycom Software Inc saw 5.55% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at PAYC starting from WATTS J C JR, who sale 500 shares at the price of $218.22 back on Feb 24 ’25. After this action, WATTS J C JR now owns 7,730 shares of Paycom Software Inc, valued at $109,108 using the latest closing price.

Peck Randall, the Chief Operating Officer of Paycom Software Inc, sale 3,600 shares at $212.19 during a trade that took place back on Feb 21 ’25, which means that Peck Randall is holding 50,665 shares at $763,866 based on the most recent closing price.

Stock Fundamentals for PAYC

Current profitability levels for the company are sitting at:

  • 0.34 for the present operating margin
  • 0.79 for the gross margin

The net margin for Paycom Software Inc stands at 0.27. The total capital return value is set at 0.32. Equity return is now at value 34.88, with 9.98 for asset returns.

Based on Paycom Software Inc (PAYC), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 6.4. The debt to equity ratio resting at 0.05. The interest coverage ratio of the stock is 186.57.

Currently, EBITDA for the company is 798.3 million with net debt to EBITDA at -0.39. When we switch over and look at the enterprise to sales, we see a ratio of 6.41. The receivables turnover for the company is 48.04for trailing twelve months and the total asset turnover is 0.32. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.07.

Conclusion

In conclusion, Paycom Software Inc (PAYC) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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