Royal Bank Of Canada Cuts Paychex (NASDAQ:PAYX) Price Target to $102.00

Paychex (NASDAQ:PAYX) had its price target decreased by Royal Bank Of Canada from $125.00 to $102.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a “sector perform” rating on the business services provider’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 10.83% from the stock’s previous close.

A number of other research analysts have also recently commented on PAYX. Argus lowered their target price on Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, January 2nd. Citigroup decreased their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. Wells Fargo & Company lowered their price objective on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. Wolfe Research dropped their target price on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research report on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $121.38.

Paychex Trading Up 1.5%

Shares of PAYX traded up $1.40 during trading hours on Thursday, reaching $92.04. 401,517 shares of the company traded hands, compared to its average volume of 3,746,720. The company’s fifty day moving average price is $99.36 and its two-hundred day moving average price is $112.94. The company has a market capitalization of $33.04 billion, a price-to-earnings ratio of 20.89 and a beta of 0.91. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex has a 12 month low of $86.89 and a 12 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue was up 18.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities research analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex announced that its board has approved 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 usually a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Paychex

Several hedge funds and other institutional investors have recently bought and sold shares of PAYX. Brighton Jones LLC grew its stake in shares of Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares during the period. Bison Wealth LLC lifted its position in Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after purchasing an additional 117 shares during the period. Woodline Partners LP purchased a new stake in Paychex in the first quarter worth approximately $3,333,000. Foundations Investment Advisors LLC grew its position in Paychex by 67.0% in the 2nd quarter. Foundations Investment Advisors LLC now owns 2,909 shares of the business services provider’s stock worth $423,000 after purchasing an additional 1,167 shares during the period. Finally, Intech Investment Management LLC grew its position in Paychex by 53.0% in the 2nd quarter. Intech Investment Management LLC now owns 13,951 shares of the business services provider’s stock worth $2,029,000 after purchasing an additional 4,833 shares during the period. 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.