Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) Co-CEO, President, and Chairman Chad R. Richison has recently sold a significant amount of company stock, according to a new SEC filing. The transactions, which occurred on May 17, 2024, involved the sale of Paycom shares at prices ranging between $180.4 and $180.99 per share, with the total value of the sales amounting to over $705,000.
The sales were executed in multiple transactions, and while the exact number of shares sold at each price point within the range was not disclosed, the weighted average prices for these sales were reported. This indicates that the transactions were spread out at varying prices within the specified range.
It is noteworthy that these sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which allows company insiders to sell stock at predetermined times to avoid potential accusations of insider trading. This type of plan is typically set up when an insider is not in possession of material non-public information, and it enables them to liquidate holdings according to a preset schedule.
Richison, who serves as both an officer and director of Paycom, a leader in payroll and HR software solutions, continues to hold a substantial number of shares even after these transactions. The SEC filing revealed that following the sales, Richison still owns millions of shares, both directly and indirectly through various trusts.
Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company's future performance. However, it is also common for executives to sell shares for personal financial planning, diversification, and other non-company-specific reasons.
Paycom Software, Inc., headquartered in Oklahoma City, Oklahoma, remains a key player in the provision of cloud-based human capital management software. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol PAYC.
InvestingPro Insights
Following the recent stock sales by Paycom Software, Inc.'s (NYSE:PAYC) Co-CEO, Chad R. Richison, investors might be curious about the financial health and valuation of the company. According to InvestingPro data, Paycom boasts a market capitalization of $10.16 billion USD, with a Price/Earnings (P/E) ratio of 21.94 and a Price/Book (P/B) ratio of 7.17 as of the last twelve months up to Q1 2024. These metrics suggest a company that is sizable in market cap with a valuation that weighs heavily on its book value and earnings.
The company's revenue growth remains robust, with an 18.23% increase over the last twelve months as of Q1 2024, and a gross profit margin impressively high at 86.55%. This level of profitability is often a positive indicator for investors, as it demonstrates the company's ability to manage its cost of goods sold and maintain profitability.
Two InvestingPro Tips that stand out for Paycom are its impressive gross profit margins and the fact that it holds more cash than debt on its balance sheet. These factors are particularly relevant for investors as they reflect the company's operational efficiency and financial stability. Moreover, Paycom is trading at a low P/E ratio relative to its near-term earnings growth, which could indicate the stock is undervalued compared to its growth potential.
For those interested in a deeper dive into Paycom's financials and future outlook, InvestingPro offers additional insights. There are currently 7 more tips available at InvestingPro, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tips could be invaluable for making informed investment decisions, especially in light of the insider selling activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.