Paychex (NASDAQ:PAYX) Hits New 12-Month Low – Here’s Why

Paychex, Inc. (NASDAQ:PAYX) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $91.24 and last traded at $91.8520, with a volume of 176472 shares traded. The stock had previously closed at $92.34.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PAYX. Argus decreased their price objective on shares of Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a research report on Friday, January 2nd. Morgan Stanley lowered their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. BMO Capital Markets dropped their price objective on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Cantor Fitzgerald raised Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. Finally, Citigroup lowered their target price on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Paychex has an average rating of “Reduce” and an average price target of $123.94.

Paychex Trading Down 1.4%

The business has a fifty day moving average of $106.86 and a 200-day moving average of $119.08. 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 capitalization of $32.69 billion, a P/E ratio of 20.66 and a beta of 0.90.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same quarter in the previous year, the business posted $1.14 EPS. Paychex’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be paid a $1.08 dividend. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.7%. Paychex’s dividend payout ratio is 97.96%.

Paychex announced that its board has approved a share repurchase plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Institutional Trading of Paychex

Several institutional investors have recently made changes to their positions in PAYX. Heartwood Wealth Advisors LLC bought a new stake in Paychex in the 3rd quarter worth about $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex in the 3rd quarter worth approximately $27,000. Cornerstone Planning Group LLC grew its holdings in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. NewSquare Capital LLC increased 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 valued at $31,000 after acquiring an additional 98 shares during the last quarter. Finally, Stance Capital LLC purchased a new stake in shares of Paychex during the third quarter valued at approximately $31,000. Institutional investors own 83.47% of the company’s stock.

About Paychex

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.