Paychex (NASDAQ:PAYX) Now Covered by Guggenheim

Analysts at Guggenheim started coverage on shares of Paychex (NASDAQ:PAYX) in a note issued to investors on Thursday, MarketBeat reports. The brokerage set a “neutral” rating on the business services provider’s stock.

PAYX has been the subject of a number of other research reports. Argus cut their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a research report on Friday, January 2nd. JPMorgan Chase & Co. decreased their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. Jefferies Financial Group set a $110.00 target price on Paychex in a report on Friday, December 19th. Morgan Stanley decreased their price target on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Finally, Citigroup dropped their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $122.81.

Paychex Price Performance

Shares of Paychex stock opened at $90.64 on Thursday. Paychex has a 52 week low of $86.89 and a 52 week 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. The stock has a market cap of $32.54 billion, a PE ratio of 20.55 and a beta of 0.91. The company’s 50-day moving average price is $99.36 and its two-hundred day moving average price is $112.94.

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

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

Hedge Funds Weigh In On Paychex

Institutional investors and hedge funds have recently bought and sold shares of the business. ABC Arbitrage SA raised its stake in shares of Paychex by 61.4% in the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after acquiring an additional 10,726 shares in the last quarter. GSA Capital Partners LLP bought a new position in Paychex during the third quarter worth $1,877,000. Alps Advisors Inc. raised its stake in 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 during the last quarter. Summit Global Investments raised its stake in 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 during the last quarter. Finally, PNC Financial Services Group Inc. boosted its holdings in Paychex by 38.2% in the 3rd quarter. PNC Financial Services Group Inc. now owns 978,091 shares of the business services provider’s stock valued at $123,983,000 after purchasing an additional 270,327 shares during the period. 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.