Paycom CFO sells over $1.85 million in company stock

Paycom (NYSE:PAYC) Software, Inc.'s (NYSE:PAYC) Chief Financial Officer, Craig E. Boelte, has sold a significant portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on August 12, involved the sale of 11,882 shares at a weighted average price of $155.98, totaling approximately $1.85 million.

The sales were executed in multiple transactions with prices ranging from $155.74 to $156.63. The exact distribution of shares sold at each price point within this range was not disclosed in the filing. However, the CFO has agreed to provide full details regarding the number of shares sold at each price upon request from Paycom Software, Inc., any security holder of the issuer, or the SEC staff.

Following the sale, Boelte's remaining stake in the company includes both vested and unvested shares. According to the filing, he still owns 294,849 shares of Paycom Software, which includes 9,445 unvested restricted stock units and 33,000 unvested shares of restricted stock.

Paycom, headquartered in Oklahoma City, specializes in providing cloud-based human capital management software solutions. As a key executive of the company, Boelte's stock transactions are closely watched by investors for insights into executive confidence and potential future performance of the company's stock.

In other recent news, Paycom Software has demonstrated a robust financial performance and strategic direction. The company reported a 9% increase in Q2 2024 revenue, reaching $438 million, alongside a GAAP net income of $68 million and an adjusted EBITDA of nearly $160 million, reflecting a margin of 36.5%. Despite stronger-than-expected sales, Paycom revised its FY24 revenue guidance downward by 40 basis points, introducing some uncertainty about future performance. TD Cowen and BMO Capital maintained their Hold and Market Perform ratings on Paycom respectively but increased their price targets, following the company's financial performance and strategic actions. Paycom also announced a substantial $1.5 billion share repurchase program, which is expected to stabilize its stock price. These recent developments underscore Paycom's focus on growth and automation, with positive reception for their automation tools, Beti and GONE.

InvestingPro Insights

In light of the recent stock sale by Paycom Software, Inc.'s (NYSE:PAYC) CFO, Craig E. Boelte, investors may be seeking additional context to understand the potential impact on their investment decisions. Paycom's financial health and market performance can be illuminated by key metrics from InvestingPro.

An important indicator of company strength is the balance between cash and debt. According to an InvestingPro Tip, Paycom holds more cash than debt on its balance sheet, which suggests a solid financial footing that could reassure investors about the company's ability to manage its finances in uncertain economic times.

InvestingPro Data also shows that Paycom has a market capitalization of $8.66 billion, with a P/E Ratio of 18.82, which adjusts slightly to 18.56 when looking at the last twelve months as of Q2 2024. This valuation can be appealing to investors looking for growth at a reasonable price, especially when coupled with the company's impressive gross profit margin of 86.1% during the same period.

However, not all signals are unequivocally positive. While Paycom's revenue has grown by 14.17% over the last twelve months as of Q2 2024, and the company is predicted to be profitable this year, 12 analysts have revised their earnings downwards for the upcoming period. This could indicate potential headwinds or a more conservative outlook on the company's near-term earnings potential.

For investors wanting to dive deeper into Paycom's metrics and discover additional InvestingPro Tips, there are 9 more tips available that could provide further insights into the company's performance and valuation. These tips can be accessed at InvestingPro's dedicated page for Paycom at: https://www.investing.com/pro/PAYC.

As the market digests the news of the CFO's stock sale, these InvestingPro Insights can help investors maintain a balanced view of Paycom's financial health and future prospects.

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