Stock Price & Analysis

Based on the provided data and current market conditions, here's a comprehensive analysis of PAYC stock:

Technical Analysis

The stock is currently showing signs of stabilization after a significant decline from its 52-week high. Key technical indicators suggest:

• RSI (14) at 55.36 indicates neutral momentum
• MACD is slightly positive with a reading of 1.17
• Stock is trading above its 20-day SMA ($208.42) and 60-day SMA ($214.65)
• Currently trading at $218.01 in post-market, showing a -0.54% change after a strong regular session gain of +2.88%

Fundamental Analysis

Key financial metrics show:

• Revenue Growth: FY2023 revenue reached $1.69B, up 23.2% from $1.38B in FY2022
• Net Income Growth: Increased to $340.8M in FY2023 from $281.4M in FY2022
• Strong Balance Sheet: Zero debt and $402M in cash
• Healthy Margins: Gross margin of 83.69% and net margin of 20.12%

Analyst Sentiment

Recent analyst coverage indicates a cautious stance:

• Consensus Rating: Hold (2 Strong Buys, 16 Holds)
• Mean Price Target: $218.67
• Street High Target: $250 (17.1% upside potential)
• Notable Update: Mizuho maintained Neutral rating with $210 price target

Growth Catalysts

1. Digital transformation initiatives
2. AI integration
3. International expansion
4. Strong Q4 2024 performance with:
   • Adjusted EPS of $2.32
   • Revenue of $493.8M (13.6% YoY growth)
   • Adjusted EBITDA of $214.9M (22% growth)

Risk Factors

• Projected EPS decline of ~20% for FY2025
• Market competition in HCM space
• Valuation concerns in current market environment

Conclusion

While PAYC shows strong fundamentals and recent positive momentum, the current market price of $218.01 appears fairly valued given the analyst consensus and growth expectations. The stock might be suitable for investors looking for exposure to the HCM sector with a long-term horizon, but new positions should be entered cautiously given the projected earnings decline.

Based on the available data and market analysis, here is the price prediction for PAYC stock in 2025:

Technical Analysis

The stock is currently trading at $218.01 in a consolidation phase after a significant decline from its 2023 highs. Key technical indicators show:

• RSI (14) at 55.36 indicates neutral momentum
• MACD shows positive divergence with MACD line at 1.17 and signal line at -0.08
• Stock is trading above its 20-day SMA ($208.42) but below 60-day SMA ($214.65)

Fundamental Drivers & Analyst Views

According to recent analyst coverage:

• Jefferies maintains Hold rating with $215 price target
• TD Cowen has a Hold rating with $230 target
• The mean analyst price target is $215.73, suggesting limited upside from current levels

2025 Price Target Projection

Based on the technical setup and analyst consensus, PAYC is expected to trade in the range of:

• Base case: $215-220 (most likely scenario given current consolidation pattern)
• Bullish case: $230-235 (if growth metrics improve)
• Bearish case: $190-195 (if margins deteriorate)

The stock is likely to end 2025 around $215, representing a modest decline from current levels, primarily due to:

• Expected 20% EPS decline in FY2025
• Ongoing margin pressures in the HCM software space
• Valuation multiple compression in the tech sector

The S1 support level for PAYC Stock is $204.02 ,The R1 resistant level for PAYC Stock is $220.9.

As of the end of day on 2025-02-27, the price of PAYC Stock was $215.5.

The target price for PAYC Stock according to analyst rating is 215.73, with the highest price target at 235.00 and the lowest at 187.00. Analysts have a Hold rating on PAYC Stock overall.

The market cap of PAYC is $12.1B.

Based on the comprehensive data analysis, PAYC appears to be fairly valued at current levels considering several key factors:

Growth and Profitability Analysis PAYC demonstrated solid revenue growth of 23.2% in FY2023 to $1.69B, with net income increasing to $340.8M. The company maintains healthy margins with a gross margin of 83.7% and net margin of 20.1%.

Technical Analysis The stock is currently trading at $219.19, showing a positive momentum with +2.88% gain in regular market hours. RSI-14 at 55.36 indicates neutral territory, while MACD remains slightly positive at 1.17, suggesting moderate bullish momentum.

Valuation Assessment Trading at a P/E of 24.04x, PAYC's valuation appears reasonable considering:

• Strong balance sheet with $402M cash and zero debt
• Consistent earnings beats in past quarters
• High-quality recurring revenue model
• Market leadership in HCM solutions

Analyst Consensus Recent analyst actions show a balanced view:

• Consensus "Hold" rating with price target of $215.73
• Jefferies maintains Hold rating with $215 target
• TD Cowen holds with $230 target

Growth Outlook While analysts expect a 20% EPS decline for FY2025, the company's strategic initiatives in AI integration and international expansion could provide upside potential.

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. 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. Its 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. The Company sells its solution directly through its sales force based in offices across the United States.

Based on the available data and market analysis, here is the price prediction for PAYC stock by 2030:

PAYC stock is projected to reach $350-375 by 2030, representing a 60-70% upside from current levels around $218. This forecast is supported by the company's strong fundamentals in HCM software market, consistent revenue growth (13.6% YoY in latest quarter), and successful AI integration initiatives driving operational efficiencies.

The company's zero debt position and robust cash reserves of $402 million provide financial flexibility to fund growth and innovation through 2030, while maintaining its competitive edge in the HCM solutions space.

PAYC has a total of 7308 employees.