Paycom Software Inc. experienced a price drop of 3.65%, hitting a 20-day low. This decline occurs despite the Nasdaq-100 rising by 0.33% and the S&P 500 gaining 0.39%, indicating a disconnect between Paycom's performance and the broader market trends.
The stock's movement is attributed to sector rotation, as investors appear to be shifting their focus away from Paycom amid a generally positive market environment. The company's projected annualized dividend yield of 0.9% reflects its historical profitability, but the significant trailing volatility of 35% suggests that investors are cautious about potential price fluctuations.
This situation highlights the challenges Paycom faces in maintaining investor confidence, especially as market sentiment remains optimistic. The stock's performance may continue to be influenced by broader market dynamics and investor sentiment shifts.
Wall Street analysts forecast PAYC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYC is 201.82 USD with a low forecast of 165.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast PAYC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYC is 201.82 USD with a low forecast of 165.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
11 Hold
0 Sell
Hold
Current: 139.650
Low
165.00
Averages
201.82
High
245.00
Current: 139.650
Low
165.00
Averages
201.82
High
245.00
UBS
Kevin McVeigh
Buy
downgrade
$245 -> $210
2026-01-26
New
Reason
UBS
Kevin McVeigh
Price Target
$245 -> $210
AI Analysis
2026-01-26
New
downgrade
Buy
Reason
UBS analyst Kevin McVeigh lowered the firm's price target on Paycom to $210 from $245 and keeps a Buy rating on the shares.
TD Cowen
Jared Levine
Buy
downgrade
$200 -> $184
2026-01-08
Reason
TD Cowen
Jared Levine
Price Target
$200 -> $184
2026-01-08
downgrade
Buy
Reason
TD Cowen analyst Jared Levine lowered the firm's price target on Paycom to $184 from $200 and keeps a Buy rating on the shares. The firm updated its estimates to account for the latest Fed Funds rate expectations and and thoughts ahead of its upcoming Q4 results.
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BTIG
NULL
to
Buy
initiated
$195
2025-12-16
Reason
BTIG
Price Target
$195
2025-12-16
initiated
NULL
to
Buy
Reason
BTIG initiated coverage of Paycom with a Buy rating and $195 price target.
BTIG
NULL
to
Buy
initiated
$195
2025-12-16
Reason
BTIG
Price Target
$195
2025-12-16
initiated
NULL
to
Buy
Reason
BTIG assumed coverage of Paycom with a Buy rating and $195 price target. The firm believes Paycom can continue to grow its recurring and other revenue by 10% and sees upside to the company's 2026 free cash flow outlook.
About PAYC
Paycom Software, Inc. is a provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as software-as-a-service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Its solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications. The Company's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
