BMO Capital Markets Issues Pessimistic Forecast for Paychex (NASDAQ:PAYX) Stock Price

Paychex (NASDAQ:PAYX) had its price objective reduced by stock analysts at BMO Capital Markets from $121.00 to $103.00 in a research report issued to clients and investors on Friday, Marketbeat.com reports. The firm presently has a “market perform” rating on the business services provider’s stock. BMO Capital Markets’ target price indicates a potential upside of 11.22% from the stock’s previous close.

A number of other analysts have also recently commented on PAYX. Stephens reduced their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Wolfe Research cut their price objective on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research note on Wednesday, December 10th. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, Paychex currently has an average rating of “Reduce” and a consensus price target of $122.81.

Paychex Stock Up 1.0%

PAYX opened at $92.61 on Friday. The firm’s 50 day simple moving average is $100.48 and its two-hundred day simple moving average is $113.92. The company has a market capitalization of $33.24 billion, a PE ratio of 21.00 and a beta of 0.91. Paychex has a 1-year low of $86.89 and a 1-year high of $161.24. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17.

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

Paychex declared that its board has authorized a share 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 shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of Paychex

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its holdings in Paychex by 26.3% during the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock valued at $801,000 after buying an additional 1,190 shares in the last quarter. Bison Wealth LLC raised its position in shares of Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after buying an additional 117 shares during the last quarter. Woodline Partners LP purchased a new position in shares of Paychex in the first quarter worth $3,333,000. Allworth Financial LP boosted its position in shares of Paychex by 15.1% during the second quarter. Allworth Financial LP now owns 11,760 shares of the business services provider’s stock worth $1,711,000 after acquiring an additional 1,539 shares during the last quarter. Finally, National Pension Service boosted its position in shares of Paychex by 0.8% during the second quarter. National Pension Service now owns 476,082 shares of the business services provider’s stock worth $69,251,000 after acquiring an additional 3,674 shares during the last quarter. 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.