What Happened?
Shares of HR software provider Paycom (NYSE: PAYC) fell 3.5% in the afternoon session after Citigroup lowered its price target on the software company's stock to $185 from $191.
The firm's analyst, Steven Enders, maintained a "Neutral" rating on Paycom Software despite the adjustment. The new price target represented a 3.14% decrease from the previous one. This action from the investment bank signaled a slightly less optimistic outlook on the stock's valuation in the near term, which likely contributed to selling pressure on the shares during the session.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Paycom? Access our full analysis report here.
What Is The Market Telling Us
Paycom’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3% on the news that BTIG initiated coverage on the software company with a "Buy" rating and set a price target of $195.
Analyst Allan Verkhovski from the firm started covering Paycom Software. This was a notable event because previous analyst ratings had maintained a neutral or even lowered outlook on the stock. The fresh, positive view from BTIG appeared to capture investor interest, leading to the stock's rise.
Paycom is down 20.7% since the beginning of the year, and at $159.73 per share, it is trading 39.9% below its 52-week high of $265.71 from June 2025. Investors who bought $1,000 worth of Paycom’s shares 5 years ago would now be looking at an investment worth $343.97.
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