Paycom (PAYC) Boosts Buybacks to Support Share Price

Paycom Software, Inc. (NYSE:PAYC) ranks among the stocks that could 10x over the next 5 years. On March 6, Cantor Fitzgerald reduced its price target for Paycom Software, Inc. (NYSE:PAYC) to $135 while keeping a Neutral rating on the company’s shares. The firm recognized management’s commitment to share buybacks but voiced doubts about the company’s financial situation.

The firm stated that the company has $200 million available for potential share buybacks to offset any sell-off pressure in the software-as-a-service industry. This move follows about $1.45 billion in total share repurchases since July 2024. Cantor Fitzgerald expects roughly $190 million in cash flow from operations in Q1 of fiscal 2026.

Meanwhile, Guggenheim reduced its target for Paycom Software, Inc. (NYSE:PAYC) to $180, citing the company’s 2026 revenue growth projection of 7-8%, which fell short of the 9.8% consensus. Despite this, the firm noted several positive signs, including higher annual revenue retention.

Paycom Software, Inc. (NYSE:PAYC) offers a cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies.

While we acknowledge the risk and potential of PAYC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PAYC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. 

Disclosure: None. Follow Insider Monkey on Google News.