Chad R. Richison, the CEO, President, and Chairman of Paycom (NYSE:) Software, Inc. (NYSE:PAYC), has sold a portion of his company stock, according to a recent filing. The transactions, which took place on September 19, 2024, resulted in a total sale value of over $670,000.
The sales were executed at prices ranging from $172.36 to $174.87 per share. Specifically, the transactions included sales at weighted average prices of $172.36 and $173.10, with multiple transactions occurring at prices within these ranges. Additionally, a smaller batch of shares was sold at an average price of $174.87.
The SEC filing detailed that Richison sold 800 shares at an average price of $172.36, 1130 shares at an average price of $173.10, and 20 shares at an average price of $174.87. Following these transactions, his direct holdings in Paycom Software decreased, but he continues to hold a substantial number of shares.
These sales were made under a joint Rule 10b5-1 trading plan adopted by Richison and Ernest Group, Inc. on February 16, 2024. The plan allows for the scheduled sale of shares to avoid any accusations of trading on insider information.
Investors often keep an eye on insider transactions as they can provide insights into an executive’s view of the company’s stock value. With Paycom Software being a leading provider of online payroll and human resource technology, such transactions are closely monitored.
The disclosure did not include any purchases of stock, focusing solely on the sale of existing shares. Richison’s remaining holdings in Paycom Software and related entities, as well as trusts for the benefit of his family members, suggest a continued vested interest in the company’s performance.
Investors and analysts will likely continue to watch insider activity and company performance to gauge the market’s direction for Paycom Software, which has established itself in the competitive software services industry.
In other recent news, Paycom Software reported a 9% increase in its Q2 2024 revenue, reaching $438 million, alongside a GAAP net income of $68 million. However, the company revised its FY24 revenue guidance downward by 40 basis points. Concurrently, Paycom announced a significant $1.5 billion share repurchase program. Analysts from TD Cowen and BMO Capital maintained their Hold and Market Perform ratings on Paycom but increased their price targets following these recent developments. In addition, Robert J. Levenson retired from his position on Paycom’s Board of Directors, reducing the board size from eight to seven directors. These recent developments underline Paycom’s focus on growth and automation, with their tools, Beti and GONE, receiving positive reception. Lastly, despite the upcoming retirement of CFO Craig Boelte, Paycom maintains a robust financial position. These are the recent developments for Paycom Software.
InvestingPro Insights
Amid the news of CEO Chad R. Richison’s stock sale, Paycom Software, Inc. (PAYC) exhibits several financial strengths and market performance indicators that may be of interest to investors. An InvestingPro Tip highlights that Paycom management has been actively engaged in share buybacks, a sign that could be interpreted as confidence in the company’s value and future prospects. Additionally, Paycom holds more cash than debt on its balance sheet, providing a solid liquidity position that could support future growth or help weather economic downturns.
From a valuation standpoint, Paycom is currently trading at a Price/Earnings (P/E) ratio of 20.58, which adjusts slightly lower to 20.2 for the last twelve months as of Q2 2024. This valuation level is considered low relative to the company’s near-term earnings growth. Furthermore, the company’s gross profit margin stands impressively at 86.1%, indicating efficient cost management and a strong competitive advantage in its sector.
Investors will also note that Paycom’s revenue has grown by 14.17% over the last twelve months as of Q2 2024, signaling a healthy expansion in its business operations. The company’s strong return over the last three months, with a price total return of 18.98%, may also catch the eye of those looking for recent performance trends.
For investors seeking additional insights, there are 10 more InvestingPro Tips available for Paycom Software, Inc. at These tips provide a deeper dive into the company’s financial health, market performance, and analyst expectations, which could be particularly useful when assessing the implications of insider transactions like those of CEO Chad R. Richison.
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