Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) CEO, President, and Chairman Chad Richison has sold a total of $636,185 worth of company stock, as per the latest SEC filings. The transactions occurred on August 27, with the prices of the shares ranging between $162.46 and $164.08.
The sale was executed in multiple transactions, with the price of the shares sold at a weighted average that varied within the price range specified. The exact number of shares sold at each price point within this range is available upon request from Paycom Software, Inc., any security holder of the issuer, or the SEC staff.
Richison's stock sales are part of a joint Rule 10b5-1 trading plan adopted earlier this year, which allows company insiders to sell shares at predetermined times to avoid any potential accusations of trading on non-public information.
Following the sale, Richison still holds a significant number of Paycom shares both directly and indirectly. The direct holdings amount to 2,957,408 shares after the transactions. Additionally, Richison is connected to several trusts that hold Paycom shares, which include trusts for the benefit of his children and grandchildren, as well as a revocable trust for the benefit of his spouse. These holdings may lead to Richison being deemed to beneficially own the shares held by these trusts.
Paycom Software, Inc., headquartered in Oklahoma City, specializes in providing cloud-based human capital management software solutions and has been a notable player in the industry. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol PAYC.
Investors and followers of Paycom will continue to monitor insider transactions as they may provide insights into the executives' perspectives on the company's valuation and future prospects.
In other recent news, Paycom Software has reported a 9% increase in Q2 2024 revenue, reaching $438 million, along with a GAAP net income of $68 million. Despite these strong results, the company has revised its FY24 revenue guidance downward by 40 basis points, stirring up some uncertainty regarding future performance. In addition to the revised revenue outlook, Paycom announced a substantial $1.5 billion share repurchase program, a move expected to stabilize its stock. TD Cowen and BMO Capital have maintained their Hold and Market Perform ratings on Paycom respectively, but increased their price targets following the company's financial performance and strategic actions. Despite the revised revenue forecast and the upcoming retirement of CFO Craig Boelte, Paycom maintains a robust financial position. The company's focus on growth and automation was underscored by the positive reception for their automation tools, Beti and GONE. These are the recent developments in the company's operations.
InvestingPro Insights
Amidst the news of Paycom Software, Inc. (NYSE:PAYC) CEO Chad Richison's recent stock sale, investors are keen to understand the company's financial health and future outlook. According to InvestingPro data, Paycom boasts a strong market capitalization of $9.14 billion and has shown robust revenue growth of 14.17% over the last twelve months as of Q2 2024. The company's gross profit margin stands impressively at 86.1%, highlighting its efficiency in maintaining profitability.
Two notable InvestingPro Tips for Paycom are its aggressive share buyback strategy and its solid balance sheet, which holds more cash than debt. These factors are indicative of management's confidence in the company's value and its prudent financial management. Additionally, Paycom's P/E ratio is relatively low at 19.32 when adjusted for the last twelve months as of Q2 2024, suggesting potential value for investors when paired with its near-term earnings growth.
While Paycom's stock has faced some downward pressure with a year-to-date price total return of -20.61% as of the data from the same period, the company's long-term profitability and high return over the last decade remain attractive to investors. For those looking to delve deeper into Paycom's performance and future potential, there are more InvestingPro Tips available, including analyst predictions and valuation multiples, at https://www.investing.com/pro/PAYC.
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