Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) CEO, President, and Chairman Chad R. Richison has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which occurred on September 26, 2024, involved the sale of shares at prices ranging from $159.04 to $170.00.
The total value of the shares sold by Richison amounted to over $321,224. This series of stock sales by the CEO of Paycom Software was carried out through a range of prices, indicating a weighted average selling price for the transactions. The specific number of shares sold at each price point within this range is available upon request, as noted in the footnotes of the filing.
Richison's sales were executed pursuant to a joint Rule 10b5-1 trading plan, which was adopted by the reporting person and Ernest Group, Inc. on February 16, 2024. Rule 10b5-1 trading plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of insider trading.
Following the sales, Richison still holds a substantial number of shares in Paycom Software, maintaining a significant stake in the company. The filing did not indicate any purchases of stock by Richison on the reported date.
Investors and interested parties can access full details of the transactions, including the exact number of shares sold at each separate price within the reported range, by making a request to Paycom Software, Inc. or to the SEC staff as mentioned in the footnotes of the filing.
Paycom Software, Inc. specializes in providing comprehensive, cloud-based human capital management software solutions and is known for its innovative approach to helping businesses manage their workforce effectively. The company's stock activity, including transactions by its executives, is closely watched by investors as an indicator of the company's performance and leadership's confidence in its future prospects.
In other recent news, Paycom Software has witnessed several key developments. The company reported a 9% increase in Q2 2024 revenue to $438 million, along with a GAAP net income of $68 million. However, Paycom has revised its FY24 revenue guidance downward by 40 basis points. In a strategic move, the company has initiated a significant $1.5 billion share repurchase program.
TD Cowen and BMO Capital have maintained their Hold and Market Perform ratings on Paycom, respectively, but adjusted their price targets upward. The analysts' revised revenue estimates slightly downward, citing updated federal funds rate assumptions and a modest deceleration in expected ex float growth.
In addition to these financial updates, Paycom announced the retirement of board member Robert J. Levenson and CFO Craig Boelte, without naming any successors yet. These recent developments highlight the ongoing changes within Paycom Software.
InvestingPro Insights
To provide additional context to Chad R. Richison's recent stock sale, let's examine some key financial metrics for Paycom Software, Inc. (NYSE:PAYC). As of the latest data from InvestingPro, Paycom boasts a market capitalization of $9.38 billion, reflecting its significant presence in the human capital management software sector.
The company's P/E ratio stands at 20.29, suggesting that investors are willing to pay a premium for Paycom's earnings, possibly due to its growth prospects. This is further supported by the company's impressive revenue growth of 14.17% over the last twelve months as of Q2 2024, indicating continued expansion in its market share.
Paycom's financial health appears robust, with a gross profit margin of 86.1% for the same period, showcasing the company's ability to maintain high profitability in its operations. This efficiency is also reflected in its operating income margin of 32.87%, demonstrating strong cost management and operational effectiveness.
InvestingPro Tips highlight additional strengths:
1. Paycom's return on assets stands at a healthy 11.43%, indicating efficient use of its assets to generate profits.
2. The company has shown strong EBITDA growth, with a 34.72% increase over the last twelve months as of Q2 2024.
These insights suggest that despite the CEO's recent stock sale, Paycom's underlying business fundamentals remain strong. The high profit margins and growth rates could explain why the stock maintains investor interest, even as insiders engage in planned sales.
For those seeking a deeper analysis, InvestingPro offers 14 additional tips for Paycom Software, providing a more comprehensive view of the company's financial health and market position.
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