Chad Richison, the CEO, President, and Chairman of Paycom Software, Inc. (NYSE: PAYC), recently sold over $664,000 worth of company stock in a series of transactions on September 16, 2024. These sales were disclosed in a regulatory filing with the Securities and Exchange Commission.
The sales were made at prices ranging from $169.92 to $172.23 per share. Richison sold a total of 1,950 shares at different average prices within this range. These transactions were part of a joint Rule 10b5-1 trading plan adopted by Richison and Ernest Group, Inc. earlier in the year.
After these sales, Richison’s direct ownership in Paycom Software now stands at 2,932,058 shares, in addition to his indirect ownership through Ernest Group, Inc.
Investors often pay attention to insider transactions like these as they can provide insights into the company’s stock value and future performance. Paycom Software, Inc. is known for its cloud-based human capital management software solutions based in Oklahoma City.
In other news, Paycom Software reported a 9% increase in Q2 2024 revenue, reaching $438 million, with a GAAP net income of $68 million. Despite revising its FY24 revenue guidance downward, the company announced a $1.5 billion share repurchase program. Analysts from TD Cowen and BMO Capital have maintained their ratings on Paycom, reflecting the company’s financial performance and strategic moves.
Paycom has been praised for its automation tools, Beti and GONE, as part of its growth strategy. Despite the upcoming CFO retirement, the company remains in a strong financial position with increased share buyback authorization.
InvestingPro Insights
Investors and analysts are closely monitoring Paycom Software’s financial health and future prospects as CEO Chad Richison adjusts his stake in the company. With a gross profit margin of 86.1% over the last twelve months, Paycom demonstrates strong cost control and profitability.
The company maintains a solid liquidity position with more cash than debt, and has been actively buying back shares, showing confidence in its value. With a market capitalization of $9.45 billion and a P/E ratio of 20.43, Paycom may present a buying opportunity for value investors.
For a more in-depth analysis and insights, InvestingPro offers 11 additional tips on Paycom on https://www.investing.com/pro/PAYC.
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