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

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

Several equities research analysts recently issued reports on the company. JPMorgan Chase & Co. reduced their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research note on Monday, December 22nd. Morgan Stanley reduced their price target on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Citigroup decreased their price target on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. Stifel Nicolaus lowered their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. Finally, Wolfe Research cut their target price on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research report on Wednesday, December 10th.

Institutional Trading of Paychex

Institutional investors have recently added to or reduced their stakes in the business. Heartwood Wealth Advisors LLC bought a new position in shares of Paychex during the 3rd quarter valued at $25,000. NewSquare Capital LLC increased its position in Paychex by 83.8% during the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after buying an additional 98 shares during the last quarter. Vermillion & White Wealth Management Group LLC acquired a new stake in shares of Paychex in the third quarter worth about $27,000. Stance Capital LLC bought a new stake in shares of Paychex during the 3rd quarter worth about $31,000. Finally, MMA Asset Management LLC bought a new stake in shares of Paychex during the 3rd quarter worth about $32,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Down 1.2%

PAYX stock opened at $93.27 on Wednesday. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The firm has a market capitalization of $33.48 billion, a P/E ratio of 21.15 and a beta of 0.90. Paychex has a 52-week low of $91.70 and a 52-week high of $161.24. The company’s 50 day simple moving average is $107.68 and its 200-day simple moving average is $119.44.

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

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be given a dividend of $1.08 per share. 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 4.6%. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

Paychex announced that its board has authorized a share buyback program on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Paychex Company Profile

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.