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Paycom Software (NASDAQ:PAYC), a $12.05 billion market cap HR technology company with impressive gross profit margins of 86%, saw its Chief Information Officer Bradley Scott Smith, through his revocable trust, sell a total of 1,700 shares of common stock on September 12, 2025. The sales were executed in multiple transactions with prices ranging from $222.54 to $225.69, netting a total of $334,899.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission. The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on December 12, 2024. According to InvestingPro, the company maintains strong financial health with multiple positive indicators, including solid cash flows and robust profitability metrics.
On July 17, 2025, Smith also disposed of 1,200 shares of Paycom Software common stock as a gift.
Following these transactions, Smith’s revocable trust indirectly holds 24,533 shares. Smith also directly holds 39,896 shares, which includes 13,294 unvested restricted stock units and 26,000 unvested shares of restricted stock.
In other recent news, Paycom Software announced executive leadership changes, with Shane Hadlock taking on an expanded role as chief client officer and chief technology officer, and Rachael Gannon receiving a promotion. These changes come alongside Paycom’s strong financial performance in the second quarter. KeyBanc Capital Markets highlighted a "strong 2Q beat" in both earnings and revenue, leading them to raise their price target to $290, while maintaining an Overweight rating. BMO Capital also increased its price target to $258, noting that Paycom exceeded their expectations and raised guidance for future quarters.
Stifel raised its price target to $240, citing a significant improvement in EBITDA margins, which grew by 450 basis points year-over-year. This was attributed to revenue growth and efficiency gains. TD Cowen, however, lowered its price target to $246, expressing concerns over free cash flow, despite acknowledging a "healthy revenue beat and raise." These developments reflect a mixed analyst perspective on Paycom, with some firms focusing on strong earnings and margin growth, while others remain cautious about cash flow issues.
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