Paychex (NASDAQ:PAYX) Hits New 52-Week Low – Time to Sell?

Paychex, Inc. (NASDAQ:PAYX)’s stock price hit a new 52-week low during trading on Wednesday . The company traded as low as $94.21 and last traded at $94.69, with a volume of 2267126 shares changing hands. The stock had previously closed at $99.03.

Analysts Set New Price Targets

PAYX has been the topic of several recent analyst reports. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Jefferies Financial Group set a $110.00 price target on shares of Paychex in a research report on Friday, December 19th. JPMorgan Chase & Co. decreased their price target on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. Morgan Stanley dropped their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Finally, Wells Fargo & Company reduced their target price on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $123.94.

Paychex Trading Down 4.2%

The business’s 50-day moving average price is $109.54 and its 200 day moving average price is $121.23. The firm has a market capitalization of $34.04 billion, a price-to-earnings ratio of 21.51 and a beta of 0.90. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

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

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th will be given a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date of this dividend is Wednesday, January 28th. Paychex’s dividend payout ratio is presently 97.96%.

Paychex announced that its board has initiated a stock repurchase plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Paychex

Several hedge funds and other institutional investors have recently bought and sold shares of PAYX. Heartwood Wealth Advisors LLC acquired a new position in shares of Paychex in the 3rd quarter worth approximately $25,000. Vermillion & White Wealth Management Group LLC bought a new stake in Paychex during the third quarter valued at $27,000. Cornerstone Planning Group LLC lifted its position 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 worth $30,000 after buying an additional 268 shares during the last quarter. NewSquare Capital LLC grew its position in shares of Paychex by 83.8% during the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock valued at $31,000 after buying an additional 98 shares during the last quarter. Finally, Stance Capital LLC bought a new position in Paychex in the third quarter worth about $31,000. 83.47% of the stock is owned by institutional investors.

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.