Chad Richison, CEO, President, and Chairman of Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC), has sold a significant amount of company stock, according to recent filings. The transactions, which occurred on May 29 and May 30, 2024, resulted in the sale of Paycom shares totaling over $1.26 million.
The sales were executed in multiple transactions with prices ranging from $158.67 to $165.49. These transactions were part of a pre-arranged trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public information.
Richison's sales took place through a combination of direct ownership and indirect ownership via Ernest Group, Inc., a company for which he is the sole director. The Ernest Group is owned by Richison and certain trusts for his children, for which he serves as trustee. This indirect ownership implies that Richison may be deemed to beneficially own the shares of common stock owned by Ernest Group.
Following the sales, Richison still holds a substantial number of Paycom shares, indicating his continued investment in the company's future. Paycom, based in Oklahoma City, specializes in providing comprehensive, cloud-based human capital management software solutions.
Investors often monitor insider transactions as they can provide insights into executives' confidence in their company's prospects. Richison's recent stock sales are part of regular financial planning and do not necessarily indicate a shift in the executive's outlook on Paycom's future performance.
The details of these transactions are available in the company's latest SEC filings, which provide transparency and allow shareholders to stay informed about significant insider trades.
InvestingPro Insights
As Paycom Software's CEO Chad Richison adjusts his stake in the company, investors looking to gauge the firm's financial health can consider key metrics and insights from InvestingPro. Paycom (NYSE:PAYC) holds a market capitalization of $8.22 billion and boasts an impressive gross profit margin of 86.55% for the last twelve months as of Q1 2024, reflecting the company's efficiency in managing its cost of goods sold relative to its revenue.
An InvestingPro Tip highlights that Paycom has more cash than debt on its balance sheet, providing the company with financial flexibility and potentially lower risk for investors. Additionally, Paycom's Price/Earnings (P/E) ratio stands at 17.79, which, coupled with the company's near-term earnings growth, suggests that the stock is trading at a low P/E ratio relative to its earnings growth. This aligns with another InvestingPro Tip indicating the stock is trading at a low P/E ratio relative to near-term earnings growth, potentially presenting an attractive valuation for investors.
Despite recent stock price performance showing a one-month price total return of -15.26%, Paycom's fundamentals, such as a strong gross profit margin and a solid balance sheet, may interest investors looking for long-term value. For those considering a deeper dive into Paycom's investment potential, InvestingPro offers additional tips and insights. There are currently 12 more InvestingPro Tips available for Paycom, which can be accessed by visiting https://www.investing.com/pro/PAYC. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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