Paychex, Inc. (NASDAQ:PAYX) Given Average Recommendation of “Hold” by Analysts

Shares of Paychex, Inc. (NASDAQ:PAYX) have earned an average rating of “Hold” from the seventeen brokerages that are presently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell rating, ten have issued a hold rating, two have given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $109.20.

A number of equities research analysts have weighed in on PAYX shares. Jefferies Financial Group lifted their price target on shares of Paychex from $105.00 to $120.00 and gave the stock a “hold” rating in a research note on Wednesday, August 12th. JPMorgan Chase & Co. increased their price objective on shares of Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research note on Thursday, June 25th. Citigroup raised their price objective on shares of Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. TD Cowen upped their target price on shares of Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research note on Monday, June 8th. Finally, Weiss Ratings raised shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 20th.

Insider Buying and Selling at Paychex

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

Institutional Investors Weigh In On Paychex

Large investors have recently bought and sold shares of the business. 44 Wealth Management LLC raised its holdings in Paychex by 2.7% in the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock worth $479,000 after purchasing an additional 86 shares in the last quarter. Smartleaf Asset Management LLC grew its position in shares of Paychex by 3.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock worth $381,000 after buying an additional 89 shares during the period. Prosperity Consulting Group LLC grew its position in shares of Paychex by 1.4% in the 3rd quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock worth $922,000 after buying an additional 100 shares during the period. Zacks Investment Management increased its stake in shares of Paychex by 5.1% in the 3rd quarter. Zacks Investment Management now owns 2,094 shares of the business services provider’s stock worth $265,000 after acquiring an additional 101 shares in the last quarter. Finally, SBI Securities Co. Ltd. increased its stake in shares of Paychex by 14.5% in the 4th quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider’s stock worth $90,000 after acquiring an additional 101 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Paychex Trading Up 1.2%

Shares of PAYX opened at $119.93 on Wednesday. Paychex has a 12-month low of $85.45 and a 12-month high of $141.19. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $42.66 billion, a price-to-earnings ratio of 24.53 and a beta of 0.81. The stock’s 50-day moving average price is $109.70 and its 200 day moving average price is $99.56.

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

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is 97.34%.

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.