Paycom CEO Chad Richison sells over $600k in company stock By Investing.com

Paycom (NYSE:) Software, Inc. (NYSE:PAYC) CEO, President, and Chairman Chad Richison recently sold a portion of his company stock, totaling over $600,000. The transactions, which took place on July 19, 2024, were carried out through a series of sales at varying prices.

Richison’s sales of Paycom common stock were executed in multiple transactions with prices ranging from $152.52 to $157.96 per share. The total value of the shares sold by Richison amounted to approximately $607,832. It is important to note that these sales were made in accordance with a prearranged trading plan, known as a 10b5-1 plan, which was established on February 16, 2024.

The 10b5-1 trading plan allows company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of insider trading. Such plans are set up when the insider does not have material, non-public information, and they allow insiders to diversify their investment portfolios, even if they later come into possession of material non-public information.

Investors often monitor insider transactions as they provide insights into executives’ perspectives on their company’s prospects. While the reasons behind Richison’s stock sales are not disclosed, the transactions were pre-planned and could be part of a personal financial planning strategy that includes diversification or liquidity needs.

Following these transactions, Richison continues to hold a significant amount of Paycom stock, maintaining a substantial stake in the company he leads. Paycom Software, Inc., headquartered in Oklahoma City, specializes in providing comprehensive, cloud-based human capital management software solutions for businesses.

The reported sales were filed with the Securities and Exchange Commission (SEC), and full details of the transactions, including the exact number of shares sold at each price point within the reported ranges, are available upon request from Paycom Software, Inc., its security holders, or the SEC staff.

Investors and stakeholders in Paycom Software, Inc. can stay informed about further insider transactions by reviewing the company’s filings with the SEC.

In other recent news, Paycom Software has seen a range of analyst adjustments following the announcement of its first-quarter results. TD Cowen lowered its price target from $170 to $147, maintaining a Hold rating due to a cautious approach to the company’s strategic initiatives. Despite an 11% increase in revenue year-over-year, reaching $500 million, and net income and adjusted EBITDA surpassing expectations at $247 million and nearly $230 million, respectively, Paycom maintained its full-year 2024 revenue and adjusted EBITDA guidance.

Mizuho also reduced its price target on Paycom shares to $170, maintaining a neutral stance, citing challenges such as the cannibalization of its Beti product and potential macroeconomic headwinds. BMO Capital, following the resignation of the co-CEO, maintained its Market Perform rating, suggesting a neutral outlook on the stock’s potential performance.

In addition to these financial updates, Paycom has undergone major leadership changes, including the appointment of a new Chief Operating Officer, Randy Peck, who brings over 34 years of experience in payroll and human capital management. Other promotions include Matt Paque to Chief Legal Officer and Jennifer Kraszewski to Chief Human Resources Officer. These are recent developments in Paycom Software’s ongoing journey.

InvestingPro Insights

In light of the recent insider transactions by Paycom Software, Inc. (NYSE:PAYC) CEO Chad Richison, investors may find additional context in the company’s financial metrics and market performance. Paycom, a leader in cloud-based human capital management software solutions, shows a strong financial posture with a market capitalization of $9.08 billion. According to InvestingPro data, the company boasts an impressive gross profit margin of 86.55% over the last twelve months as of Q1 2024, indicating efficient operations and a strong command over costs.

Additionally, Paycom’s P/E ratio stands at 19.55, which aligns closely with the adjusted P/E ratio for the same period at 19.31. This valuation metric suggests that the company’s earnings are robust relative to its share price. It’s also worth noting that Paycom has achieved a revenue growth of 18.23% during the last twelve months as of Q1 2024, showcasing its ability to expand its top-line figures in a competitive market.

From an investment standpoint, Paycom presents a mixed picture. The InvestingPro Tips highlight that the company is trading at a low P/E ratio relative to near-term earnings growth, which could signal an undervalued stock to potential investors. Moreover, analysts predict the company will be profitable this year, reinforcing the notion of a financially sound business. On the other hand, the stock price has seen a significant decline over the past year, with a 53.96% drop in the one-year price total return as of the date provided, potentially opening an opportunity for investors to buy shares at a lower price point. For those interested in more detailed analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/PAYC.

For readers looking to explore further insights and tips on Paycom or other stocks, InvestingPro offers a comprehensive suite of tools and analysis. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a wealth of financial information and investment guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.