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

Paychex, Inc. (NASDAQ:PAYX)’s stock price hit a new 52-week low during trading on Monday . The stock traded as low as $106.40 and last traded at $106.0450, with a volume of 137063 shares changing hands. The stock had previously closed at $106.63.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on PAYX. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Morgan Stanley cut their target price on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Wells Fargo & Company decreased their price target on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a research report on Tuesday, December 9th. Wolfe Research dropped their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. Finally, Argus reduced their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research note on Friday, January 2nd. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Paychex has an average rating of “Reduce” and a consensus target price of $125.67.

Paychex Stock Performance

The firm has a fifty day moving average of $111.88 and a 200-day moving average of $124.88. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The firm has a market cap of $38.18 billion, a P/E ratio of 24.06 and a beta of 0.91.

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

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.1%. Paychex’s payout ratio is presently 97.96%.

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

Institutional Trading of Paychex

Hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its stake in Paychex by 1.0% in the second quarter. Brighton Jones LLC now owns 6,954 shares of the business services provider’s stock valued at $1,012,000 after purchasing an additional 71 shares in the last quarter. Empirical Finance LLC increased its position in shares of Paychex by 0.7% in the 2nd quarter. Empirical Finance LLC now owns 11,267 shares of the business services provider’s stock valued at $1,639,000 after buying an additional 75 shares in the last quarter. Quantum Portfolio Management LLC raised its stake in Paychex by 3.1% during the 2nd quarter. Quantum Portfolio Management LLC now owns 2,464 shares of the business services provider’s stock worth $358,000 after buying an additional 75 shares during the period. GPS Wealth Strategies Group LLC grew its stake in Paychex by 40.6% in the second quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after acquiring an additional 76 shares during the period. Finally, QTR Family Wealth LLC increased its holdings in shares of Paychex by 2.5% in the second quarter. QTR Family Wealth LLC now owns 3,107 shares of the business services provider’s stock worth $452,000 after acquiring an additional 77 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

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.