Paychex, Inc. (NASDAQ:PAYX) Given Consensus Rating of “Reduce” by Brokerages

Shares of Paychex, Inc. (NASDAQ:PAYX) have received a consensus recommendation of “Reduce” from the eighteen brokerages that are currently covering the stock, Marketbeat reports. Three research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and one has given a buy rating to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $125.6667.

A number of brokerages recently weighed in on PAYX. Wells Fargo & Company decreased their price target on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. JPMorgan Chase & Co. lowered their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research note on Monday, December 22nd. Jefferies Financial Group set a $110.00 price objective on shares of Paychex in a research note on Friday, December 19th. Morgan Stanley reduced their target price on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. Finally, Stifel Nicolaus lowered their price target on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Heartwood Wealth Advisors LLC purchased a new stake in Paychex during the 3rd quarter worth approximately $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex during the 3rd quarter valued at approximately $27,000. NewSquare Capital LLC grew its position in shares of Paychex by 83.8% during the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after buying an additional 98 shares in the last quarter. Stance Capital LLC bought a new stake in shares of Paychex in the third quarter worth $31,000. Finally, MMA Asset Management LLC bought a new stake in shares of Paychex in the third quarter worth $32,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Stock Down 3.2%

PAYX opened at $108.60 on Tuesday. Paychex has a 1 year low of $108.00 and a 1 year high of $161.24. The firm has a 50 day moving average price of $113.40 and a 200 day moving average price of $128.84. 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 company has a market cap of $38.98 billion, a PE ratio of 24.63 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last released 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. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period in the previous year, the firm earned $1.14 earnings per share. Paychex’s revenue for the quarter was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Sell-side analysts expect that Paychex will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th were paid a dividend of $1.08 per share. The ex-dividend date was Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 4.0%. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

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.