Paychex, Inc. (NASDAQ:PAYX) Given Consensus Rating of “Reduce” by Analysts

Paychex, Inc. (NASDAQ:PAYX) has been assigned an average rating of “Reduce” from the eighteen ratings firms that are covering the company, MarketBeat reports. Four research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has issued a buy rating on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $123.9375.

Several equities research analysts have recently issued reports on PAYX shares. Citigroup lowered their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research report on Monday, December 22nd. Royal Bank Of Canada decreased their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research note on Friday, December 5th. BMO Capital Markets lowered their target price on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a report on Tuesday, December 9th. Wolfe Research cut their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. Finally, Morgan Stanley reduced their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd.

Paychex Trading Up 1.2%

Shares of PAYX stock opened at $88.48 on Wednesday. Paychex has a 12 month low of $86.89 and a 12 month high of $161.24. The company has a market cap of $31.76 billion, a PE ratio of 20.06 and a beta of 0.90. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The business’s 50 day moving average is $105.29 and its two-hundred day moving average is $117.71.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period in the prior year, the firm earned $1.14 EPS. Paychex’s quarterly revenue was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities analysts predict that Paychex will post 4.99 EPS for the current year.

Paychex announced that its board has authorized a stock buyback plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th will be issued a $1.08 dividend. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a yield of 4.9%. Paychex’s dividend payout ratio is 97.96%.

Institutional Trading of Paychex

A number of hedge funds have recently modified their holdings of the company. ABC Arbitrage SA lifted its position in shares of Paychex by 61.4% during the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock worth $3,576,000 after buying an additional 10,726 shares during the period. GSA Capital Partners LLP acquired a new position in Paychex during the third quarter worth $1,877,000. Summit Global Investments raised its stake in Paychex by 1,938.2% during the third quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock worth $6,103,000 after acquiring an additional 45,781 shares in the last quarter. Alps Advisors Inc. lifted its holdings in shares of Paychex by 20.6% during the third quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock valued at $30,494,000 after acquiring an additional 41,114 shares during the period. Finally, Invesco Ltd. boosted its stake in shares of Paychex by 6.0% in the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after purchasing an additional 249,550 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.