Paychex (NASDAQ:PAYX) Sets New 1-Year Low – What’s Next?

Paychex, Inc. (NASDAQ:PAYX) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $109.71 and last traded at $109.8330, with a volume of 643632 shares trading hands. The stock had previously closed at $110.48.

Analysts Set New Price Targets

A number of research firms have weighed in on PAYX. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a research report on Thursday. UBS Group decreased their price target on shares of Paychex from $140.00 to $132.00 and set a “neutral” rating on the stock in a research note on Thursday, October 2nd. Wolfe Research cut their price target on shares of Paychex from $145.00 to $140.00 and set an “underperform” rating for the company in a research report on Friday, September 26th. TD Cowen decreased their price objective on Paychex from $140.00 to $126.00 and set a “hold” rating on the stock in a report on Wednesday, October 1st. Finally, Morgan Stanley increased their target price on Paychex from $132.00 to $133.00 and gave the company an “equal weight” rating in a report on Monday, October 20th. Thirteen research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $139.87.

Paychex Trading Down 0.6%

The firm has a market cap of $39.54 billion, a PE ratio of 24.69, a PEG ratio of 2.68 and a beta of 0.93. The firm has a fifty day simple moving average of $124.03 and a two-hundred day simple moving average of $138.78. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.15.

Paychex (NASDAQ:PAYX) last announced its earnings results on Tuesday, September 30th. The business services provider reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.02. The company had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The firm’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.16 earnings per share. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. Equities analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Friday, November 7th will be given a dividend of $1.08 per share. The ex-dividend date is Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 3.9%. Paychex’s payout ratio is currently 97.08%.

Institutional Trading of Paychex

Several large investors have recently bought and sold shares of the company. Heartwood Wealth Advisors LLC bought a new stake in shares of Paychex during the third quarter valued at approximately $25,000. NewSquare Capital LLC lifted its position in 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 buying an additional 98 shares during the period. Quarry LP purchased a new position in Paychex during the first quarter valued at $34,000. Nova Wealth Management Inc. bought a new stake in shares of Paychex during the 1st quarter valued at $38,000. Finally, MMA Asset Management LLC purchased a new stake in shares of Paychex in the 3rd quarter worth about $32,000. 83.47% of the stock is owned by institutional investors.

About Paychex

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