Paychex (NASDAQ:PAYX) Given New $103.00 Price Target at BMO Capital Markets

Paychex (NASDAQ:PAYX) had its price target reduced by BMO Capital Markets from $121.00 to $103.00 in a research note published on Friday morning, Marketbeat reports. BMO Capital Markets currently has a market perform rating on the business services provider’s stock.

Other research analysts also recently issued reports about the company. Morgan Stanley reduced their target price on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Jefferies Financial Group set a $110.00 price target on Paychex in a report on Friday, December 19th. TD Cowen reissued a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Paychex currently has an average rating of “Reduce” and an average price target of $122.81.

Paychex Stock Up 1.0%

PAYX opened at $92.61 on Friday. The firm has a market cap of $33.24 billion, a price-to-earnings ratio of 21.00 and a beta of 0.91. 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’s 50-day simple moving average is $100.48 and its 200-day simple moving average is $114.09. Paychex has a twelve month low of $86.89 and a twelve month high of $161.24.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating 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 company’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities research analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Paychex declared that its board has initiated a stock repurchase program on Friday, January 16th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a $1.08 dividend. This represents a $4.32 annualized dividend and a yield of 4.7%. The ex-dividend date was Wednesday, January 28th. Paychex’s payout ratio is 97.96%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Heartwood Wealth Advisors LLC bought a new position in Paychex in the third quarter valued at about $25,000. Vermillion & White Wealth Management Group LLC bought a new stake in Paychex during the 3rd quarter worth about $27,000. Stance Capital LLC acquired a new position in Paychex during the 3rd quarter valued at about $31,000. MMA Asset Management LLC acquired a new position in Paychex during the 3rd quarter valued at about $32,000. Finally, Westfuller Advisors LLC bought a new position in shares of Paychex in the 3rd quarter valued at about $35,000. 83.47% of the stock is currently owned by institutional investors.

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.