Paycom Software's stock surged 9.57% during intraday trading on Thursday, reflecting strong investor optimism toward the human capital management software provider.

The significant price movement follows the company's announcement of a new stock repurchase program authorizing up to $2 billion in share buybacks, along with a declared cash dividend of $0.75 per share. This capital return initiative signals management's confidence in the firm's business outlook and future cash flow generation.

Concurrently, several analysts raised their price targets on Paycom shares. Mizuho increased its target to $130 from $120, BMO raised its target to $145 from $137, BTIG lifted its target to $160 from $140, and Deutsche Bank adjusted its target to $140 from $125. Various firms, including TD Cowen and Barclays, maintained their Buy and Equal-Weight ratings, respectively, contributing to the positive sentiment.