What Happened?
Shares of HR software provider Paycom (NYSE: PAYC) jumped 3% in the afternoon session after BTIG initiated coverage on the software company with a "Buy" rating and set a price target of $195.
Analyst Allan Verkhovski from the firm started covering Paycom Software. This was a notable event because previous analyst ratings had maintained a neutral or even lowered outlook on the stock. The fresh, positive view from BTIG appeared to capture investor interest, leading to the stock's rise.
After the initial pop the shares cooled down to $167.12, up 2.7% from previous close.
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What Is The Market Telling Us
Paycom’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 13.3% on the news that the company reported third-quarter earnings that disappointed investors, despite meeting revenue expectations.
The human resource and payroll technology provider posted adjusted earnings of $1.94 per share, falling short of the consensus estimate of $1.96. While revenue of $493.3 million was slightly ahead of expectations and grew 9.2% from the previous year, the results highlighted slowing momentum. The company reaffirmed its full-year revenue guidance, but this was not enough to satisfy investors, who seemed to be hoping for a stronger outlook.
Furthermore, billings growth of 9.5% mirrored the slowdown in sales, suggesting increasing competition is creating challenges.
Paycom is down 17% since the beginning of the year, and at $167.12 per share, it is trading 37.1% below its 52-week high of $265.71 from June 2025. Investors who bought $1,000 worth of Paycom’s shares 5 years ago would now be looking at an investment worth $378.27.
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