TD Cowen Lowers Paychex (NASDAQ:PAYX) Price Target to $94.00

Paychex (NASDAQ:PAYX) had its price objective reduced by research analysts at TD Cowen from $95.00 to $94.00 in a note issued to investors on Tuesday,MarketScreener reports. The firm presently has a “hold” rating on the business services provider’s stock. TD Cowen’s price objective points to a potential upside of 4.57% from the stock’s current price.

PAYX has been the topic of several other reports. BMO Capital Markets raised their price target on Paychex to $52.00 and gave the stock an “outperform” rating in a research report on Thursday, March 26th. Robert W. Baird dropped their price objective on Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a report on Thursday, March 26th. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Royal Bank Of Canada dropped their price objective on Paychex from $125.00 to $102.00 and set a “sector perform” rating for the company in a report on Thursday, March 19th. Finally, Guggenheim initiated coverage on Paychex in a report on Thursday, March 19th. They issued a “neutral” rating for the company. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $108.75.

Paychex Price Performance

PAYX opened at $89.89 on Tuesday. The stock’s 50 day simple moving average is $94.24 and its 200 day simple moving average is $108.50. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.26 and a quick ratio of 1.26. Paychex has a 1 year low of $86.89 and a 1 year high of $161.24. The firm has a market cap of $32.21 billion, a price-to-earnings ratio of 19.80 and a beta of 0.88.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.04. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The business had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same period last year, the company earned $1.49 EPS. Paychex’s revenue for the quarter was up 19.9% compared to the same quarter last year. As a group, analysts predict that Paychex will post 4.99 earnings per share for the current year.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Heartwood Wealth Advisors LLC purchased a new position in shares of Paychex in the 3rd quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex in the 3rd quarter valued at approximately $27,000. Cornerstone Planning Group LLC lifted its stake in shares of Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after purchasing an additional 268 shares during the period. Stance Capital LLC purchased a new position in shares of Paychex in the 3rd quarter valued at approximately $31,000. Finally, Hilton Head Capital Partners LLC purchased a new position in shares of Paychex in the 4th quarter valued at approximately $31,000. Hedge funds and other 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.