Paychex (NASDAQ:PAYX) Coverage Initiated at Stephens

Investment analysts at Stephens began coverage on shares of Paychex (NASDAQ:PAYX) in a research note issued on Friday, Briefing.com reports. The firm set an “equal weight” rating and a $132.00 price target on the business services provider’s stock. Stephens’ price target would indicate a potential upside of 5.53% from the company’s current price.

Several other equities research analysts have also commented on PAYX. Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 20th. Citigroup lifted their target price on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research note on Thursday, May 28th. Stifel Nicolaus increased their price target on Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a report on Wednesday, June 17th. Finally, UBS Group lifted their price objective on shares of Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, Paychex currently has an average rating of “Hold” and an average price target of $111.00.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $125.08 on Friday. The company has a market capitalization of $44.49 billion, a PE ratio of 25.58, a P/E/G ratio of 2.60 and a beta of 0.82. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex has a twelve month low of $85.45 and a twelve month high of $138.19. The firm has a fifty day simple moving average of $116.07 and a 200 day simple moving average of $101.83.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter in the prior year, the firm posted $1.19 earnings per share. The business’s quarterly revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, sell-side analysts forecast that Paychex will post 5.96 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Paychex

Several hedge funds have recently modified their holdings of the company. Hilton Head Capital Partners LLC bought a new stake in Paychex during the fourth quarter worth $31,000. Kingdom Financial Group LLC. bought a new stake in Paychex in the 4th quarter valued at about $33,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Paychex during the 4th quarter valued at approximately $34,000. Wealth Watch Advisors INC bought a new position in shares of Paychex in the third quarter worth $42,000. Finally, Field & Main Bank bought a new position in Paychex in the 2nd quarter worth about $33,000. 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.