Form 4: Paycom's Chief Information Officer, Bradley Scott Smith, Executes Stock Sales Under 10b5-1 Plan

Bradley Scott Smith, Paycom's Chief Information Officer, sold shares of common stock on March 13, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On March 13, 2025, Bradley Scott Smith, the Chief Information Officer of Paycom Software, Inc. (PAYC), executed multiple sales of Paycom's common stock.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on December 12, 2024.
• The sales were executed at varying prices, with weighted average prices reported for each set of transactions.
• Smith sold 1,799 shares at a weighted average price of $200.46, 847 shares at $201.52, 254 shares at $202.24, and 100 shares at $203.4.
• Following these transactions, Smith directly owns 39,896 shares of Paycom common stock, which includes 13,294 unvested restricted stock units and 26,000 unvested shares of restricted stock.
• Additionally, Smith indirectly owns 28,733 shares through the Bradley Scott Smith Revocable Trust, dated October 30, 2017.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing related to insider trading. The sentiment is neutral as it simply reports transactions.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which is a legal and transparent way for insiders to sell shares.

Risks

• While the sales are under a 10b5-1 plan, large insider sales can sometimes be perceived negatively by the market.

Industry Context

Insider sales are a common occurrence in publicly traded companies, and the use of 10b5-1 plans is a standard practice to avoid accusations of trading on non-public information. The market reaction to such sales often depends on the size of the transactions and the overall sentiment towards the company.

Comparison to Industry Standards

• It is common for executives at publicly traded companies, such as Paycom, to utilize 10b5-1 trading plans to manage their stock sales.
• Companies like Salesforce, Workday, and Oracle also see similar insider trading activity under pre-arranged plans.
• The size and frequency of these sales are generally in line with industry standards for executive compensation and diversification strategies.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders if the market perceives the sales negatively, potentially leading to a slight decrease in stock price.

Key Dates