Paychex (NASDAQ:PAYX) Price Target Lowered to $94.00 at UBS Group

Paychex (NASDAQ:PAYX) had its price target reduced by UBS Group from $98.00 to $94.00 in a research note published on Monday,Benzinga reports. They currently have a neutral rating on the business services provider’s stock.

A number of other equities analysts have also recently commented on PAYX. Stephens decreased their target price on shares of Paychex from $125.00 to $105.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 26th. TD Cowen decreased their target price on shares of Paychex from $95.00 to $94.00 and set a “hold” rating on the stock in a research report on Tuesday, April 7th. Citigroup decreased their target price on shares of Paychex from $120.00 to $99.00 and set a “neutral” rating on the stock in a research report on Thursday, March 26th. Robert W. Baird decreased their target price on shares of Paychex from $148.00 to $125.00 and set a “neutral” rating on the stock in a research report on Thursday, March 26th. Finally, Wells Fargo & Company decreased their target price on shares of Paychex from $116.00 to $95.00 and set an “underweight” rating on the stock in a research report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $106.38.

Paychex Stock Performance

NASDAQ PAYX opened at $89.32 on Monday. Paychex has a 52-week low of $85.45 and a 52-week high of $161.24. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market capitalization of $32.00 billion, a P/E ratio of 19.67 and a beta of 0.88. The company has a fifty day moving average of $93.34 and a 200-day moving average of $107.49.

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

Paychex declared that its board has initiated a share repurchase plan on Friday, January 16th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were given a $1.08 dividend. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.8%. Paychex’s payout ratio is presently 95.15%.

Hedge Funds Weigh In On Paychex

Hedge funds have recently modified their holdings of the company. ABC Arbitrage SA boosted its stake 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 valued at $3,576,000 after purchasing an additional 10,726 shares in the last quarter. GSA Capital Partners LLP bought a new stake in shares of Paychex during the 3rd quarter valued at about $1,877,000. Alps Advisors Inc. boosted its stake in shares of Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock valued at $30,494,000 after purchasing an additional 41,114 shares in the last quarter. Summit Global Investments boosted its stake in shares of Paychex by 1,938.2% during the 3rd quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock valued at $6,103,000 after purchasing an additional 45,781 shares in the last quarter. Finally, First Long Island Investors LLC boosted its stake in shares of Paychex by 23.9% during the 3rd quarter. First Long Island Investors LLC now owns 99,607 shares of the business services provider’s stock valued at $12,626,000 after purchasing an additional 19,185 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

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.