Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) CEO, President, and Chairman Chad Richison has sold a total of $566,390 worth of company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which occurred on June 5, 2024, involved shares sold at prices ranging from $144.62 to $147.40.
The executive sold multiple batches of shares, with prices for the sales averaging between $144.62 and $147.40. The sales were executed under a prearranged 10b5-1 trading plan, which allows company insiders to set up a schedule for selling stocks they own in accordance with insider trading laws.
Richison's transactions come as part of regular stock trading activity for the company's executives and are detailed in the SEC filing. Following the sales, Richison still holds a substantial number of shares in the company, indicating continued confidence in Paycom's future.
Paycom Software, Inc., headquartered in Oklahoma City, is a leading provider of online payroll and human resource technology. As a prominent figure in the tech industry, Richison's trading activities are closely watched by investors for insights into executive sentiment and potential future performance of the company’s stock.
The reported sales are part of a larger financial picture for the CEO, who maintains ownership through direct and indirect holdings, including shares owned by Ernest Group, Inc., which is directed by Richison and holds shares for the benefit of his children's trusts. Additionally, the filing notes holdings in various family trusts, indicating a diverse portfolio of investments tied to the Richison family.
Investors often monitor such filings to understand the actions of company insiders, as these can provide indications of the company's health and the executive's view of its stock value. Paycom's stock performance and market activities will continue to be of interest as stakeholders assess the company's strategic direction and growth potential.
In other recent news, Paycom Software has undergone significant leadership changes and reported robust Q1 2024 results. Paycom announced the appointment of a new COO, Randy Peck, and several other key promotions. These changes come alongside an 11% increase in year-over-year revenue, reaching $500 million, with net income and adjusted EBITDA surpassing expectations at $247 million and nearly $230 million, respectively.
However, despite 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. This news led to several analyst adjustments. Mizuho lowered its price target on Paycom shares to $170, citing challenges such as the cannibalization of its Beti product and potential macroeconomic headwinds.
TD Cowen also reduced its stock price target to $170 due to a lower-than-anticipated revenue guidance for FY24. BMO Capital Markets reduced its outlook, adjusting the stock price target to $190.00, reflecting uncertainty regarding Paycom's financial model leading into 2025. Meanwhile, Citi maintained a neutral rating despite a revenue beat in the first quarter, setting a new stock price target at $193.00. These recent developments highlight the dynamic and evolving landscape for Paycom Software.
InvestingPro Insights
As Paycom Software, Inc. (NYSE:PAYC) navigates through the market, recent data from InvestingPro provides a more nuanced look at the company's financial health and stock performance. With a market capitalization of $8.21 billion and a P/E ratio that stands at 17.91, Paycom is trading at a valuation that reflects investor sentiment about its earnings capacity. Notably, the company's gross profit margins remain impressive, with the last twelve months as of Q1 2024 showing a robust 86.55%, highlighting Paycom's efficiency in maintaining profitability relative to its revenue.
One of the InvestingPro Tips suggests that Paycom's stock is currently in oversold territory according to the Relative Strength Index (RSI), which could signal a potential rebound opportunity for investors who believe in the company's fundamentals. Additionally, Paycom's balance sheet strength is evident as it holds more cash than debt, providing a cushion against market volatility and financial uncertainties.
Despite recent stock price declines, with a 52-week price high percentage of 38.83%, Paycom's executive team has demonstrated confidence in the company's trajectory through aggressive share buybacks. Moreover, Paycom's commitment to returning value to shareholders is underscored by a dividend yield of 1.03% as of the latest data.
For investors seeking a deeper dive into Paycom's performance and potential, InvestingPro offers additional tips, including analysis on earnings revisions and valuation multiples. With a total of 16 InvestingPro Tips, subscribers can gain comprehensive insights into the company's outlook. Interested readers can take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/PAYC.
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