Paychex, Inc. (NASDAQ:PAYX) Stock Has Consensus Target Price of $127.59

Shares of Paychex, Inc. (NASDAQ:PAYX) have received a consensus recommendation of “Hold” from the eighteen research firms that are covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $127.59.

Several brokerages recently issued reports on PAYX. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a report on Friday, October 16th. Wells Fargo & Company raised their price objective on shares of Paychex from $95.00 to $111.00 and gave the stock an “underweight” rating in a research note on Wednesday, September 9th. Stephens cut their price objective on shares of Paychex from $132.00 to $113.00 and set an “equal weight” rating for the company in a report on Thursday, September 24th. Bank of America decreased their price objective on shares of Paychex from $450.00 to $225.00 in a research report on Wednesday, July 15th. Finally, Robert W. Baird lowered their target price on shares of Paychex from $125.00 to $110.00 and set a “neutral” rating on the stock in a research note on Monday, September 28th.

Paychex Stock Down 1.0%

Shares of PAYX stock opened at $108.21 on Monday. The stock’s 50-day simple moving average is $113.28 and its 200-day simple moving average is $103.62. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market capitalization of $38.52 billion, a PE ratio of 21.47, a P/E/G ratio of 2.48 and a beta of 0.86. Paychex has a fifty-two week low of $85.45 and a fifty-two week high of $127.98.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, beating analysts’ consensus estimates of $1.32 by $0.02. Paychex had a return on equity of 52.78% and a net margin of 27.35%. The firm had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same quarter in the prior year, the firm earned $1.22 earnings per share. Paychex’s revenue for the quarter was up 5.9% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Equities analysts expect 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 Wednesday, November 25th. Stockholders of record on Monday, October 26th will be issued a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a dividend yield of 4.4%. The ex-dividend date is Monday, October 26th. Paychex’s payout ratio is currently 94.44%.

Insiders Place Their Bets

In other news, Director Joseph Velli sold 7,839 shares of the business’s stock in a transaction dated Wednesday, October 14th. The shares were sold at an average price of $107.68, for a total transaction of $844,103.52. Following the transaction, the director owned 81,725 shares of the company’s stock, valued at approximately $8,800,148. The trade was a 8.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On Paychex

Several institutional investors and hedge funds have recently bought and sold shares of the company. XXEC Inc. acquired a new position in Paychex during the 2nd quarter worth about $1,123,016,000. BlackRock Inc. purchased a new stake in Paychex during the second quarter worth about $2,728,970,000. Bank of America Corp DE acquired a new stake in shares of Paychex during the second quarter worth about $434,061,000. Legal & General Group Plc acquired a new stake in shares of Paychex during the second quarter worth about $207,184,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Paychex during the second quarter worth about $193,555,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Company Profile

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.