Paycom Software Announces $50 Million Stock Repurchase Plan

Paycom Software, Inc. PAYC revealed that its Board has authorized a stock repurchase plan of a maximum of $50 million to buy back its own shares over the next 24 months.

The company indicated that shares may be bought back from time-to-time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws. That included Rule 10b5-1 programs, and the repurchase plan may be suspended or discontinued at any time.

Paycom Software CEO, Chad Richison, reacted to say, "One of our strengths continues to be our strong cash-flow generation, allowing us to repurchase up to $50 million of our stock over the next 24 months."

He added, "Our top priority continues to be reinvesting in our business and growth initiatives. We remain focused on organic growth and will continue to invest aggressively toward that goal. At the same time, our strong financial position and ability to generate significant cash-flow afford us the opportunity to return value to our stockholders in a manner consistent with our capital strategy."

The stock traded 3.29 percent higher on Thursday.