Paychex (NASDAQ:PAYX) Receives Underperform Rating from Wolfe Research

Wolfe Research reissued their underperform rating on shares of Paychex (NASDAQ:PAYX) in a report issued on Tuesday morning, Benzinga reports. The brokerage currently has a $94.00 target price on the business services provider’s stock.

A number of other analysts also recently weighed in on PAYX. Smith Barney Citigroup increased their price target on shares of Paychex from $93.00 to $105.00 in a report on Tuesday, January 5th. Moffett Nathanson raised their price objective on shares of Paychex from $100.00 to $105.00 in a report on Monday, December 28th. BMO Capital Markets raised their price objective on shares of Paychex from $93.00 to $96.00 and gave the stock a market perform rating in a report on Tuesday. Wells Fargo & Company assumed coverage on shares of Paychex in a report on Friday, December 18th. They set an overweight rating and a $105.00 price objective for the company. Finally, Bank of America raised their price objective on shares of Paychex from $70.00 to $81.00 in a report on Monday, December 28th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company’s stock. Paychex currently has a consensus rating of Hold and an average target price of $93.00.

Shares of Paychex stock opened at $96.28 on Tuesday. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.28 and a quick ratio of 1.28. Paychex has a fifty-two week low of $60.00 and a fifty-two week high of $101.15. The firm has a fifty day moving average price of $95.54 and a two-hundred day moving average price of $90.54. The company has a market cap of $34.70 billion, a PE ratio of 32.86, a price-to-earnings-growth ratio of 3.81 and a beta of 0.90.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Monday, April 5th. The business services provider reported $0.96 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.04. Paychex had a net margin of 26.66% and a return on equity of 37.99%. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the prior year, the firm earned $0.97 EPS. The business’s revenue was down 2.7% on a year-over-year basis. Analysts expect that Paychex will post 2.94 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 25th. Investors of record on Monday, February 1st were paid a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 2.58%. The ex-dividend date of this dividend was Friday, January 29th. Paychex’s payout ratio is 82.67%.

In related news, CEO Martin Mucci sold 50,000 shares of Paychex stock in a transaction that occurred on Friday, February 26th. The shares were sold at an average price of $91.09, for a total transaction of $4,554,500.00. Also, VP John B. Gibson sold 82,488 shares of Paychex stock in a transaction that occurred on Tuesday, February 2nd. The stock was sold at an average price of $89.79, for a total transaction of $7,406,597.52. 11.70% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in PAYX. Wealth Alliance lifted its stake in Paychex by 4.1% in the third quarter. Wealth Alliance now owns 2,949 shares of the business services provider’s stock valued at $235,000 after buying an additional 117 shares in the last quarter. IHT Wealth Management LLC lifted its stake in Paychex by 4.2% in the third quarter. IHT Wealth Management LLC now owns 3,414 shares of the business services provider’s stock valued at $272,000 after buying an additional 137 shares in the last quarter. Kingsview Wealth Management LLC lifted its stake in Paychex by 9.6% in the third quarter. Kingsview Wealth Management LLC now owns 63,706 shares of the business services provider’s stock valued at $5,082,000 after buying an additional 5,555 shares in the last quarter. Jeppson Wealth Management LLC acquired a new stake in shares of Paychex in the third quarter valued at approximately $377,000. Finally, Advisor Partners LLC raised its holdings in shares of Paychex by 4.0% in the third quarter. Advisor Partners LLC now owns 12,046 shares of the business services provider’s stock valued at $961,000 after purchasing an additional 460 shares during the last quarter. 70.00% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Company Profile

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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Analyst Recommendations for Paychex (NASDAQ:PAYX)

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