Paycom Software (PAYC.US) Price Target 2026/2027: 20% Downside – Overvalued?

274.59
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Paycom Software Price Target 2026: Analysts See 19% Downside

The average price target for Paycom Software is $222.59. This price target represents the analysts' view of the stock price over the next 12 months. The stock appears overvalued, because the price target is lower than the current price. It is -18.94% above the target, and analysts expect the price to fall over the next 12 months. Even if the stock may be overvalued, price momentum can last longer than expected. That is why it is important to keep an eye on the stock and its momentum on an ongoing basis. WallStreetBuys helps you with the technical analysis and keeps you up to date on the development.
⚠️ Don’t buy a stock just because of its price targetA price target is the analysts’ estimate of where the stock will trade in 12 months. That estimate is often wrong. A large study of US stocks from 2000 to 2009 found that only 38% of price targets had been met after 12 months. On average, the targets promised 15 percentage points more return than the stocks delivered. Use the price target together with the financials and the trend, not on its own.Source: Bradshaw, Brown and Huang (2013)

Is Paycom Software overvalued or undervalued?

Paycom Software is currently overvalued with a gap of 18.9% relative to the price target.


The current price is $274.59, which places Paycom Software in the overvalued category. The stock is considered undervalued when the price is below $200.33, and overvalued when the price exceeds $244.85.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Paycom Software, the fair value range lies between $200.33 and $244.85.


See the full price target analysis for Paycom Software →

Analyst Ratings for Paycom Software stock in 2026: Hold

21 analysts cover Paycom Software. Analysts are mostly neutral — 61.9% recommend Hold. The average price target is $222.59, which is 18.9% below the current price.

Consensus: Hold (3.48/5)
Strong Buy
6 (28.6%)
Hold
13 (61.9%)
Sell
2 (9.5%)
Strong Sell Sell Hold Buy Strong Buy
3.48 out of 5 based on 21 analysts

About Paycom Software – Software - Application

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma. Read more about the company

Key Figures for Paycom Software

$12.3B Market cap
$2.1B Revenue
Software - Application Industry
27.62 P/E
5.74 P/S
17.48 P/B
United States Listed on exchange
paycom.com Website

What kind of stock is Paycom Software?

Growth stock Momentum stock

Paycom Software is classified as a growth stock and momentum stock. This means the stock combines several attractive traits, and strong price momentum.

Score Overview for Paycom Software

💰 Value Score 28/100 (Low)
⭐ Quality Score 68/100 (High)
🚀 Momentum Score 99/100 (Very High)
📊 Total Score 65/100

⚠️ 1 red flag identified

Our analysis has identified 1 potential risk factor in Paycom Software that investors should be aware of.

⚠️ High debt: The debt-to-equity ratio is 272% – the company carries considerably more debt than equity, which raises the financial risk.

📈 Valuation

Paycom Software trades at a P/E ratio of 27.6, which is above the market average. The forward P/E is 16.7 (39% lower), which suggests the market expects rising earnings. The P/S ratio is 5.7 (high — the market pays a premium for the revenue). The P/B ratio is 17.5. The PEG ratio is 1.17.

💵 Profitability & Growth

Paycom Software has a profit margin of 22.8% (excellent) and an operating margin of 31.7%. Return on equity (ROE) is 41.1% — excellent return on equity. Return on assets (ROA) is 8.8%. The latest quarterly earnings grew 48.1% year over year — strong growth.

🏦 Financial Health

The Piotroski score is 5 out of 9 — average financial health. Altman Z2 is 2.90 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 271.8% — high debt, which raises the risk.

🚀 Momentum & Short Interest

Short interest is 6.68% — elevated, some investors are betting on a decline.

Paycom Software Dividend 2026: 0.6% Dividend Yield

Dividend Key Figures for Paycom Software

Dividend yield
0.57%
Latest dividend per share
0.38 USD
Payout ratio
16.1%
Low
Dividend growth (3 years)
+0.0%
Avg. annual dividend (3 years)
1.39 USD

When does Paycom Software pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
August 24, 2026
Latest payment date
September 8, 2026

How much does Paycom Software pay in dividends?

Paycom Software pays dividends to its shareholders. The most recently paid dividend was 0.38 USD per share, which corresponds to a dividend yield of 0.57%. The dividend has stayed stable over the last 3 years.

The payout ratio is 16.1%, which is low. This suggests the company prioritizes reinvesting in growth over dividend payments. There is good room to raise the dividend in the future.

Historical Dividend Payments for Paycom Software

We have registered dividend payments for Paycom Software since May 26, 2023. In that period the stock has paid a dividend 14 times, most recently on Aug 24, 2026. This stock qualifies as a sporadic dividend stock, because it has paid a dividend at least once a year for the last 3 years. That makes it interesting for investors looking for occasional dividend income.

Ex-datePayment dateAmountCurrency
2026-08-242026-09-080.38USD
2026-05-262026-06-080.38USD
2026-03-092026-03-230.38USD
2025-11-242025-12-080.38USD
2025-08-252025-09-080.38USD
2025-05-272025-06-090.38USD
2025-03-102025-03-240.38USD
2024-11-252024-12-090.38USD
2024-08-262024-09-090.38USD
2024-05-282024-06-100.38USD
2024-03-012024-03-180.38USD
2023-11-242023-12-110.38USD
2023-08-252023-09-110.38USD
2023-05-262023-06-120.38USD

Insider Trading in Paycom Software 2026: Only sells

In 2026, insiders at Paycom Software have made 20 transactions, all of which were sales. On a net basis, insiders took $26,153,372 out of the stock. Active insiders include Hadlock Terrell Shane, Peck Randall, Foster Robert D. and others. Over the last 3 months: only sells.

Last 3 Months: Only sells

Insiders have exclusively sold shares over the last 3 months.

Over the last 3 months: 0 purchases and 2 sales. A net $449,021 out of the stock.

All Transactions: Only sells

Insiders have exclusively sold shares in the recent period. This can suggest management sees limited opportunity.

Across the last 20 transactions: 0 purchases and 20 sales. A net $26,153,372 out of the stock.

Latest sale: Hadlock Terrell Shane sold 241 shares at $240.07 each on 2026-08-28.

Who is selling: Hadlock Terrell Shane, Peck Randall, Foster Robert D., Smith Bradley Scott, Richison Chad R. and others.

Latest Insider Trades in Paycom Software (2026)

The table shows the last 20 reported insider transactions in Paycom Software. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-08-28 Hadlock Terrell Shane Sell 241 240 57,857
2026-08-27 Hadlock Terrell Shane Sell 1,639 239 391,164
2026-05-18 Peck Randall Sell 2,500 141 351,250
2025-12-10 Foster Robert D. Sell 1,300 163 211,458
2025-12-05 Peck Randall Sell 1,442 167 240,122
2025-09-12 Smith Bradley Scott Sell 586 226 132,254
2025-06-12 Smith Bradley Scott Sell 65 254 16,485
2025-06-05 Richison Chad R. Sell 6,700 266 1,783,205
2025-06-04 Richison Chad R. Sell 23,200 265 6,152,640
2025-06-04 Peck Randall Sell 890 263 234,266

Who is buying and selling Paycom Software shares in 2026?

The following insiders have sold shares: Hadlock Terrell Shane, Peck Randall, Foster Robert D., Smith Bradley Scott, Richison Chad R. and others. In total, $26,153,372 was sold across 20 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

Paycom Software Short Selling 2026: 6.7% Sold Short

High short interest: 6.7% of the free float
Short % of free float
6.7%
Assessment
High short interest
Short squeeze risk
Moderate
Data source
EODHD
Reported about twice a month
The stock has a high share of short selling. Between 5-10% of the freely traded shares are sold short, which suggests some investors are betting on falling prices. Positive surprises can lead to a moderate short squeeze.

What does this mean for you as an investor?
A short interest of 6.7% means that 6.7% of the freely traded shares in Paycom Software have been borrowed and sold by investors betting on falling prices.

The next potential catalyst is the earnings report on Nov 4, 2026. With a short interest of 6.7%, the report can trigger considerable volatility.

Short interest comes from our data provider EODHD. The figure is reported about twice a month; we check it every trading day.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
▲
6.7%

When Does Paycom Software Report Earnings – Next Date: Nov 4, 2026

The next earnings report from Paycom Software is scheduled for November 4, 2026, after the market closes. This report covers the third quarter (Q3), which ended on September 30, 2026.



Technical Analysis of Paycom Software 2026 – Signal: Strong Buy

Overall Technical Signal: Strong Buy

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated October 24, 2026.

Trend Analysis of Paycom Software, Inc

Paycom Software, Inc is in a short-term uptrend. The price of $274.59 is 14.9% above the 20-day average ($238.90). Medium term, the picture is positive: the price is 18.7% above the 50-day average ($231.39). Long term, the stock is 70.8% above the 200-day average ($160.78), which confirms a long-term uptrend.

Golden Cross: The 50-day average (231.39) is above the 200-day average (160.78), which is a classic bullish signal for Paycom Software, Inc.

Is Paycom Software, Inc overbought or oversold?

Paycom Software, Inc has an RSI of 81.9, which places the stock in overbought territory (above 70). Even though the stock is overbought, the broader trend is positive. A short-term pullback is possible, but the trend still supports the price.

MACD Analysis for Paycom Software, Inc

Daily MACD: MACD is positive (12.409), which means the short-term trend is bullish (the 12-day EMA is above the 26-day EMA). MACD is above the signal line (8.490) by 3.919, which confirms rising momentum in the uptrend.

Weekly MACD: MACD5 is positive (26.264), which indicates a broader bullish long-term trend. MACD5 is above the signal line (19.282) by 6.982, which confirms rising long-term momentum.

Overall MACD assessment: Both the daily and weekly MACD are positive and above their signal lines. Trend and momentum confirm each other across time horizons – the strongest bullish signal.

Risk Profile for Paycom Software, Inc

Paycom Software, Inc has an annual standard deviation of 47.9%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Paycom Software, Inc

Trend: Positive. The price trades above SMA50 and SMA200.

MACD trend (zero line): Daily bullish (12.409). Weekly bullish (26.264).

MACD momentum (signal): Daily rising. Weekly rising.

RSI: 81.9 – overbought.

Technical signal: Strong Buy

The price is in an uptrend (above SMA50/SMA200) and MACD is positive on both a daily and weekly basis. Trend and MACD trend confirm each other – the strongest technical buy signal.

Frequently Asked Questions About Paycom Software stock in 2026

Should you buy Paycom Software stock now?
Yes, the technical signal for Paycom Software is currently Strong Buy. Paycom Software trades at $274.59 as of Oct 24, 2026. The technical analysis shows the following: MACD is positive (bullish trend) at 12.409 with rising momentum (signal: 8.490); RSI is at 81.9 (overbought), suggesting the price may have risen too quickly; the stock is in a short-term uptrend (price above the 20-day average); the analyst price target of $222.59 is 18.9% below the current price. The stock is in a broader uptrend (above SMA50/SMA200). This is a technical observation based on current data, not investment advice.
What is the price target for Paycom Software stock?
The average analyst price target for Paycom Software is $222.59. The current price is $274.59, which gives a downside of 18.9%. Based on this, the stock is considered overvalued. The fair value range (±10% of the price target) is between $200.33 and $244.85.
Is Paycom Software a dividend stock?
Yes, Paycom Software is a dividend stock with a dividend yield of 0.57%. The latest dividend was $0.38 per share. The latest ex-dividend date (traded without the dividend) was Aug 24, 2026. The payout ratio is 16.1%, which is considered sustainable.
When does Paycom Software pay a dividend in 2026?
The next dividend date for Paycom Software has not been set yet. The latest ex-dividend date (last trading day with dividend rights) was Aug 24, 2026. The latest dividend was $0.38 per share with an ex-dividend date of Aug 24, 2026. The dividend yield is 0.57%. The payout ratio of 16.1% points to a sustainable dividend with room to grow.
What is the risk of Paycom Software stock?
Paycom Software is rated as a stock in the risk category Moderate. the annual standard deviation is 47.9%, which classifies the stock as Moderate. In addition, an RSI of 81.9 signals overbought (elevated risk of a pullback).
Is Paycom Software overvalued?
Yes, Paycom Software is considered overvalued based on the analyst price target (18.9% above the price target). Paycom Software has the following valuation ratios: a P/E ratio of 27.6 (moderately to highly valued), a P/S ratio of 5.7, a P/B ratio of 17.5. The analyst price target suggests that the stock is overvalued by 18.9%.
Is Paycom Software overbought?
Yes, Paycom Software is overbought with an RSI of 81.9 (above 70). The technical indicators show: RSI is at 81.9 (above the 70 mark), which signals the price is overbought and may have risen too quickly. In addition, the price is 14.9% above the 20-day average (short-term uptrend). In addition, MACD is positive with rising momentum (bullish).
When is the next Paycom Software earnings report?
Paycom Software reports its next earnings on November 4, 2026. The stock currently trades at $274.59. With a P/E ratio of 27.6, the market will be watching closely whether earnings meet expectations. The RSI is at 81.9, so the report can reinforce the current technical trend.
Is Paycom Software shorted?
Yes, Paycom Software is shorted with 6.7% of the free float sold short. This is a high level of short selling, which suggests some investors are betting on falling prices. Positive surprises can lead to a moderate short squeeze. The figure comes from our data provider EODHD, is reported about twice a month, and we check it every trading day.
Are insiders buying Paycom Software stock?
No, insiders are not buying Paycom Software shares – they are net sellers. Over the last 3 months, insiders have made 0 purchases and 2 sales. On a net basis, 449,021 $ worth of shares were sold. Across the last 20 reported transactions, the split is 0 purchases and 20 sales, with a net 26,153,372 $ sold. Active sellers include Hadlock Terrell Shane, Peck Randall, Foster Robert D. and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is Paycom Software a good stock?
Based on our total score, Paycom Software is rated as a good stock with a total score of 65 out of 100. The stock scores above average on value, quality and momentum. The score is made up of Value: 28/100, Quality: 68/100, Momentum: 99/100. In addition: the price target is 18.9% below the current price; a dividend of 0.57%. Whether now is the time to buy is a separate question: the technical signal is Strong Buy. Whether Paycom Software is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Paycom Software stock?
The outlook for Paycom Software based on current data: the average analyst price target is $222.59 (-18.9%); the stock is in an uptrend (above SMA50 and SMA200); the next earnings report is due on Nov 4, 2026, which can move the price; the P/E ratio is 27.6 (moderate). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Paycom Software stock rising?
Paycom Software is rising right now. The technical indicators show: the price is 14.9% above the 20-day average; MACD is positive with rising momentum (bullish signal); short interest is 6.7% (high – many are betting on a decline); insiders have mostly been selling the stock recently. For the latest context, see our technical analysis and insider section above.
How high can Paycom Software go?
The average analyst price target for Paycom Software is $222.59, which is 18.9% below the current price of $274.59. The stock has traded between $104.15 and $275.22 over the last 52 weeks. The price is close to the 52-week high. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Paycom Software fall?
The stock has traded as low as $104.15 over the last 52 weeks — that is 62.1% below the current price of $274.59. The biggest decline (drawdown) in the same period was 62.2% from high to low. Within a year, the price typically swings about ±47.9% (standard deviation — a measure of price swings). A difficult year could therefore mean a further decline of that size. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Paycom Software do?
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life c... The company belongs to the Technology sector, more specifically the Software - Application industry, is headquartered in United States, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Paycom Software as an investment.
Did Paycom Software raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Paycom Software. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history above.
Is Paycom Software making money or losing money?
Yes, Paycom Software is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 22.8% — which is excellent. The operating margin (profit before interest and taxes) is 31.7%. At a P/E ratio of 27.6, you currently pay 27.6 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Paycom Software go bankrupt?
The bankruptcy risk of Paycom Software is rated as low. Altman Z2 (a model for assessing financial distress) is 2.90 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 5 — which is average. Debt relative to equity is 272% (high). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Paycom Software have a lot of debt?
Yes, Paycom Software has elevated debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 272%. For the technology sector, anything above 120% counts as elevated — that raises the financial risk, especially if interest rates rise or earnings fall. Tech companies are usually asset-light and need little borrowed capital — anything below 60% counts as low in this sector. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Paycom Software service its debt? Can service its debt without problems — the interest coverage ratio (how many times earnings can cover interest payments) is 16.2x, and net debt equals 1.1 years of earnings (EBITDA).

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