Paycom changes management and appoints new chief operating officer Via Investing.com

OKLAHOMA CITY – Paycom (NYSE:) Software, Inc. (NYSE: PAYC), a provider of cloud-based human capital management software, announced significant changes to its executive team, including the appointment of a new chief operating officer (COO). Randy Peck, who has been with Paycom for two decades, will now serve as the company’s chief operating officer.

The announcement was made earlier this week and marked a strategic move by Paycom to strengthen its leadership as it continues to expand its business. Peck’s appointment is accompanied by the promotions of Matt Paque to chief legal officer and Jennifer Kraszewski to chief human resources officer.

Peck, who has more than 34 years of management experience in the payroll and human capital management (HCM) industry, has held various positions at Paycom, including strategic advisor to executives. His previous positions at the company included director of software strategy, director of operations and director of customer service.

Kraszewski, who joined Paycom in 2018, played a key role in cultivating the company’s work culture, which was recognized with numerous awards. Under her leadership, Paycom was recognized for its work environment and employee engagement initiatives.

Paque, who has been with Paycom since 2017, will continue to oversee all of the company’s legal affairs in his new position. His experience includes over 20 years as a lawyer, both in private practice and as deputy general counsel of a global, publicly traded manufacturing company.

The leadership changes at Paycom come as the company celebrates its 25th anniversary in business, known for simplifying human resources and payroll processes through its technology. Paycom software aims to empower employees by providing direct access to their HR data through a single application.

Chad Richison, founder, CEO, president and chairman of the board of Paycom, expressed confidence in the newly appointed leaders, stating that their proven skills are aligned with Paycom’s mission to deliver exceptional service and innovative software solutions.

Information about these leadership team changes is based on a press release from Paycom Software, Inc.

In other recent news, Paycom Software has been subject to several analyst revisions following its first quarter 2024 results. The company reported 11% year-over-year revenue growth to $500 million, and net income and adjusted EBITDA exceeded expectations for levels of USD 247 million and almost USD 230 million, respectively. Despite these strong results, Paycom maintained full-year 2024 revenues and adjusted EBITDA guidance, forecasting revenues of $1.860 million to $1.885 billion and adjusted EBITDA of $720 million to $730 million.

Mizuho lowered its price target on Paycom shares to $170, maintaining a neutral stance, citing challenges such as cannibalization of the Beti product and potential macroeconomic headwinds. Similarly, TD Cowen lowered its price target on the stock to $170.00 due to lower-than-expected revenue guidance for FY24. BMO Capital Markets also revised its outlook, lowering its price target on the stock to $190.00, reflecting uncertainty around Paycom’s financial model for the year 2025. Meanwhile, Citi set a new price target for the stock at $193.00, maintaining a neutral rating despite the first quarter revenue decline.

InvestingPro Insights

As Paycom Software, Inc. (NYSE: PAYC) makes changes to its management team, the company’s financial health and market performance remain the focus of investors’ attention. Paycom, known for its cloud-based human capital management software, is in a strong financial position with a market capitalization of approximately $8.99 billion. This proves the company’s significant presence in the industry and investor confidence in its business model.

One of InvestingPro Data’s standout metrics is Paycom’s impressive gross profit margin, which, as of Q1 2024, remains high at 86.55% trailing twelve months. This high margin indicates the company’s ability to maintain profitable operations while scaling revenues, which increased by 18.23% over the same period. This financial health is critical as Paycom continues to innovate and grow under the leadership of new Chief Operating Officer Randy Peck.

Investors may also want to pay attention to Paycom’s price-to-earnings (P/E) ratio, which currently stands at 19.47. This means the company’s stock valuation is relatively reasonable compared to short-term earnings growth, as one InvestingPro tip highlights. Additionally, the trailing twelve-month adjusted P/E ratio from Q1 2024 is slightly lower at 19.18, suggesting consistent valuation over time.

Despite the recent market volatility, with the company’s shares down 15.26% over the past month, the strength of Paycom’s balance sheet is highlighted by another InvestingPro tip, which indicates that the company has more cash than debt. This financial prudence may provide Paycom with the flexibility to navigate market fluctuations and invest in strategic initiatives, such as recent executive appointments.

For investors interested in deeper analysis and additional insights, more InvestingPro tips for Paycom are available. These tips allow for a comprehensive look at various aspects of the company’s financial results and market position. By visiting the dedicated InvestingPro for Paycom website, investors can access these tips and use the coupon code PRONEWS24 to get an additional 10% off your 1- or 2-year Pro and Pro+ subscriptions, unlocking valuable information that can help you make investment decisions.

This article was generated with the assistance of AI and reviewed by an editor. More information can be found in our Regulations.