Chad Richison, CEO, President, and Chairman of Paycom (NYSE:PAYC) Software (ETR:SOWGn), Inc. (NYSE:PAYC), sold shares of the company valued at $825,853, according to a recent SEC filing. The transactions took place on November 4, 2024, with the sale prices ranging from $209.33 to $212.30 per share.
The sales were executed as part of a joint Rule 10b5-1 trading plan, involving Richison and Ernest Group, Inc., a company in which he is the sole director. Richison's direct ownership of Paycom shares decreased following these transactions, though he maintains significant holdings in the company. The sales were conducted in multiple transactions, with Richison providing details upon request regarding the specific number of shares sold at each price point within the reported range.
In other recent news, Paycom Software has reported robust growth in its Q3 earnings, with an 11% year-over-year increase in revenue, reaching $452 million. This growth was credited to the company's automation initiatives, including the GONE time-off solution. However, despite these positive results, Paycom remains cautious for the fourth quarter, citing unpredictable bonus runs and interest rate fluctuations as potential challenges.
BMO Capital Markets, Piper Sandler, and Oppenheimer have all adjusted their outlook on Paycom following these recent developments. BMO Capital Markets and Piper Sandler raised their price targets to $197 and $191 respectively, while maintaining a neutral stance on the stock. Oppenheimer maintained a Perform rating, applauding Paycom's third-quarter performance.
Paycom's management has also revised the 2024 revenue guidance to a narrower range, reflecting lower float assumptions despite the third quarter's upside. The company's CEO, Chad Richison, noted that September marked the largest sales month in Paycom's history, primarily due to new logo acquisitions. These are recent developments that reflect Paycom's performance and strategic focus on automation solutions.
InvestingPro Insights
While Chad Richison's recent share sale might raise eyebrows, a closer look at Paycom Software, Inc. (NYSE:PAYC) through InvestingPro data reveals a company with strong fundamentals. The stock's recent performance has been particularly noteworthy, with InvestingPro data showing a 30.44% return over the past week and a 38.57% return over the last three months.
Paycom's financial health appears robust, with an impressive gross profit margin of 85.62% for the last twelve months as of Q3 2024. This aligns with one of the InvestingPro Tips highlighting the company's "impressive gross profit margins." Additionally, the company's P/E ratio of 26.14 suggests a relatively reasonable valuation considering its growth prospects.
Another InvestingPro Tip indicates that 11 analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for Paycom's future performance. This optimism is further supported by the company's strong revenue growth of 11.92% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Paycom Software, providing deeper insights into the company's financial position and market performance.
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