Paychex, Inc. (NASDAQ:PAYX) Receives Consensus Rating of “Reduce” from Analysts

Paychex, Inc. (NASDAQ:PAYX) has received a consensus recommendation of “Reduce” from the eighteen brokerages that are currently covering the stock, Marketbeat.com reports. Three investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and one has given a buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $125.6667.

Several research firms have weighed in on PAYX. Citigroup cut their target price on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a report on Monday, December 22nd. Jefferies Financial Group set a $110.00 price objective on Paychex in a report on Friday, December 19th. UBS Group reduced their target price on Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a report on Thursday, October 2nd. Cowen reiterated a “hold” rating on shares of Paychex in a report on Monday, December 1st. Finally, TD Cowen dropped their price target on shares of Paychex from $126.00 to $114.00 and set a “hold” rating on the stock in a research report on Monday, December 1st.

Paychex Price Performance

Shares of PAYX opened at $109.48 on Tuesday. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The firm has a market cap of $39.30 billion, a PE ratio of 24.83 and a beta of 0.91. The firm’s 50 day moving average price is $113.09 and its 200 day moving average price is $128.40. Paychex has a twelve month low of $107.80 and a twelve month high of $161.24.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. The company 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%. Paychex’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, research analysts expect that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Investors of record on Friday, November 7th were issued a $1.08 dividend. This represents a $4.32 annualized dividend and a yield of 3.9%. The ex-dividend date was Friday, November 7th. Paychex’s dividend payout ratio (DPR) is 97.96%.

Institutional Investors Weigh In On Paychex

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in Paychex by 17.2% during the 3rd quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock valued at $4,787,151,000 after purchasing an additional 5,549,511 shares during the period. Norges Bank acquired a new position in shares of Paychex during the second quarter worth approximately $302,244,000. Select Equity Group L.P. lifted its holdings in shares of Paychex by 99.0% during the first quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider’s stock worth $539,102,000 after buying an additional 1,738,372 shares during the last quarter. Voloridge Investment Management LLC bought a new stake in shares of Paychex in the third quarter valued at approximately $117,809,000. Finally, Marshall Wace LLP grew its stake in shares of Paychex by 179.5% in the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock worth $156,854,000 after acquiring an additional 692,533 shares during the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

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.