Paycom Software, Inc. (PAYC) Stock Analysis
Recovery setup
Technology · Software - Application
Sell if holding. At $126.72, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.2): -1.5; Thin upside margin: 7.8%.
Paycom is a cloud-based HCM SaaS provider offering an integrated platform covering payroll, talent management, HR, and time/labor management, serving approximately 39,200 U.S. clients as of December 31, 2025. Revenue is subscription-based with a 91% annual retention rate in... Read more
Sell if holding. At $126.72, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.2): -1.5; Thin upside margin: 7.8%. Chart setup: Death cross but MACD improving, RSI 69. Score 5.7/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-03-26Item 5.02LOWArchana Vemulapalli resigned from Paycom's Board of Directors effective March 31, 2026, to pursue other professional opportunities. Board size reduced from seven to six. No disagreement with the Company on any matter.SEC filing →
- 2026-02-19Item 5.02LOWShane Hadlock appointed President and Chief Client Officer (sole principal operating officer) effective February 18, 2026; annual base salary $700,000. Chad Richison continues as CEO. Randy Peck (COO) reports to Hadlock.SEC filing →
- 2026-01-26Item 5.02LOWJeff York appointed Chief Sales Officer effective January 23, 2026, returning to the role he held 2007–2021. Amy Walker transitioned to a 12-month consulting role on January 20, 2026.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $126.72, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.2): -1.5; Thin upside margin: 7.8%. Chart setup: Death cross but MACD improving, RSI 69. Prior stop was $117.65. Score 5.7/10, moderate confidence.
Take-profit target: $136.38 (+7.8% upside). Prior stop was $117.65. Stop-loss: $117.65.
Thin upside margin: 7.8%; Leverage penalty (D/E 5.2): -1.5; Earnings in 6 days (event risk).
Paycom Software, Inc. trades at a P/E of 15.8 (forward 11.0). TrendMatrix value score: 7.2/10. Verdict: Sell.
28 analysts cover PAYC with a consensus score of 3.6/5. Average price target: $152.
What does Paycom Software, Inc. do?Paycom is a cloud-based HCM SaaS provider offering an integrated platform covering payroll, talent management, HR, and...
Paycom is a cloud-based HCM SaaS provider offering an integrated platform covering payroll, talent management, HR, and time/labor management, serving approximately 39,200 U.S. clients as of December 31, 2025. Revenue is subscription-based with a 91% annual retention rate in 2025; historically the majority came from payroll applications. Products are sold directly through internally trained sales representatives.