Paychex (NASDAQ:PAYX) Upgraded by Cantor Fitzgerald to Strong Sell Rating

Cantor Fitzgerald upgraded shares of Paychex (NASDAQ:PAYX) to a strong sell rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently commented on PAYX. Jefferies Financial Group set a $110.00 target price on shares of Paychex in a report on Friday, December 19th. Robert W. Baird reduced their price target on shares of Paychex from $153.00 to $148.00 and set a “neutral” rating on the stock in a report on Wednesday, October 1st. TD Cowen reissued a “hold” rating on shares of Paychex in a report on Monday, December 1st. Stifel Nicolaus cut their price objective on Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a research report on Wednesday, December 17th. Finally, Wolfe Research decreased their target price on Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a research report on Wednesday, December 10th. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $123.94.

Paychex Price Performance

Shares of Paychex stock traded down $2.09 during trading hours on Tuesday, hitting $102.85. The company’s stock had a trading volume of 856,938 shares, compared to its average volume of 2,852,352. The company has a market cap of $36.92 billion, a PE ratio of 23.33 and a beta of 0.91. 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 business has a 50 day moving average price of $111.70 and a two-hundred day moving average price of $124.33. Paychex has a 12-month low of $102.09 and a 12-month high of $161.24.

Paychex (NASDAQ:PAYX) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The firm had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. During the same quarter last year, the business posted $1.14 earnings per share. The firm’s 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 expect that Paychex will post 4.99 earnings per share for the current fiscal year.

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

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.2%. Paychex’s payout ratio is currently 97.96%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Arkadios Wealth Advisors lifted its position in shares of Paychex by 8.6% during the 2nd quarter. Arkadios Wealth Advisors now owns 53,974 shares of the business services provider’s stock valued at $7,851,000 after buying an additional 4,254 shares in the last quarter. Invesco Ltd. increased its holdings in Paychex by 6.0% in the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock worth $637,820,000 after acquiring an additional 249,550 shares in the last quarter. Nordea Investment Management AB raised its position in Paychex by 48.9% during the third quarter. Nordea Investment Management AB now owns 1,260,376 shares of the business services provider’s stock worth $155,341,000 after acquiring an additional 414,196 shares during the period. Aberdeen Group plc lifted its holdings in Paychex by 10.8% during the second quarter. Aberdeen Group plc now owns 255,076 shares of the business services provider’s stock valued at $36,716,000 after purchasing an additional 24,820 shares in the last quarter. Finally, Teacher Retirement System of Texas grew its position in shares of Paychex by 67.3% in the third quarter. Teacher Retirement System of Texas now owns 101,622 shares of the business services provider’s stock valued at $12,882,000 after purchasing an additional 40,872 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.

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.