Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) CEO, President, and Chairman Chad R. Richison recently sold a total of $563,250 worth of company stock, according to the latest SEC filings. The transactions were carried out on June 10, with the prices of the shares ranging from $142.85 to $146.00.
The sale was executed in a series of transactions at varying prices, with the lowest being $142.85 and the highest reaching $146.00. The exact number of shares sold at each price point within this range was not disclosed; however, the reporting person has committed to providing detailed information regarding the number of shares sold at each price upon request.
This recent sale is part of a prearranged trading plan, known as a Rule 10b5-1 plan, which was jointly adopted by Richison and Ernest Group, Inc. on February 16, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Despite the sale, Richison still maintains a substantial stake in the company. The transactions reported in the SEC filing show that following the sales, Richison directly owns over 3 million shares of Paycom's common stock. Additionally, Richison may be deemed to beneficially own additional shares held by Ernest Group, Inc. and various family trusts.
Paycom Software, Inc., headquartered in Oklahoma City, specializes in providing comprehensive, cloud-based human capital management software to help businesses streamline their employment processes from recruitment to retirement.
Investors and the public can access the full details of the stock transactions as filed with the SEC, ensuring transparency in the trading activities of the company’s executives.
In other recent news, Paycom Software has experienced significant changes in its leadership and financial performance. The company has seen an 11% increase in revenue year-over-year, reaching $500 million, with net income and adjusted EBITDA surpassing expectations at $247 million and nearly $230 million, respectively. Despite these strong results, Paycom maintained its full-year 2024 revenue and adjusted EBITDA guidance, projecting revenues between $1.860 billion and $1.885 billion, and adjusted EBITDA between $720 million and $730 million.
Recent leadership changes include the appointment of a new Chief Operating Officer, Randy Peck, who brings over 34 years of experience in payroll and human capital management. Other promotions include Matt Paque to Chief Legal Officer and Jennifer Kraszewski to Chief Human Resources Officer.
Several analyst adjustments have been made following these developments. BMO Capital maintained its Market Perform rating and adjusted its stock price target to $190.00, reflecting uncertainty regarding Paycom's financial model leading into 2025. Mizuho reduced its price target on Paycom shares to $170, maintaining a neutral stance, citing challenges such as the cannibalization of its Beti product and potential macroeconomic headwinds. Similarly, TD Cowen lowered its stock price target to $170 due to a lower-than-anticipated revenue guidance for FY24. Meanwhile, Citi set a new stock price target at $193.00, maintaining a neutral rating despite a revenue beat in the first quarter.
InvestingPro Insights
As Paycom Software, Inc. (NYSE:PAYC) navigates the market, recent data from InvestingPro shows a blend of financial strength and market challenges. With a market capitalization of $8.11 billion and a P/E ratio standing at 17.62, Paycom presents a picture of a company with a solid valuation in the industry. The P/E ratio has slightly adjusted to 17.3 in the last twelve months as of Q1 2024, showing a modest change in investor sentiment.
InvestingPro Tips highlight that management has been proactively buying back shares, a sign of confidence in the company's future. Additionally, Paycom holds more cash than debt on its balance sheet, which is an indicator of financial stability. These strategic financial positions, along with an impressive gross profit margin of 86.55% in the same period, showcase the company's ability to generate earnings relative to its revenue.
Despite recent stock performance where the price has seen a decline, with a 1-month price total return of -15.44% and a 1-year price total return of -51.62%, the company's fundamentals remain robust. Paycom's gross profit for the last twelve months as of Q1 2024 was $1.51 billion, underpinning the company's efficient operational model. Moreover, the company is trading at a high revenue valuation multiple, which should be of interest to investors looking for growth potential.
For those considering a deeper dive into Paycom's financial health and market performance, InvestingPro offers additional tips and insights. There are 14 more InvestingPro Tips available that can provide a more nuanced understanding of Paycom's investment potential. Interested readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment strategy with comprehensive data and analytics.
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