Paychex, Inc. (NASDAQ:PAYX) Given Average Recommendation of “Hold” by Brokerages

Shares of Paychex, Inc. (NASDAQ:PAYX) have been given an average recommendation of “Hold” by the eighteen analysts that are currently covering the firm, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell recommendation, ten have given a hold recommendation, three have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $125.6471.

A number of brokerages have recently weighed in on PAYX. UBS Group lifted their price objective on Paychex from $105.00 to $115.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Stephens assumed coverage on shares of Paychex in a research report on Friday, September 4th. They issued an “equal weight” rating and a $132.00 target price on the stock. TD Cowen raised their price objective on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. Finally, Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th.

Paychex Stock Performance

Paychex stock opened at $115.18 on Friday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm has a 50-day moving average of $117.73 and a 200-day moving average of $102.70. The firm has a market cap of $40.97 billion, a P/E ratio of 23.55, a P/E/G ratio of 2.41 and a beta of 0.82. Paychex has a 1-year low of $85.45 and a 1-year high of $135.97.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.Paychex’s revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Sell-side analysts expect that Paychex will post 5.96 EPS for the current year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is currently 97.34%.

Insider Transactions at Paychex

In related news, Director Joseph Tucci sold 3,907 shares of the company’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Robert Schrader sold 2,600 shares of the stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Paychex

Institutional investors have recently made changes to their positions in the company. 44 Wealth Management LLC grew its stake in Paychex by 2.7% in the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after buying an additional 86 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in Paychex by 3.5% during the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock worth $381,000 after acquiring an additional 89 shares during the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of Paychex by 6.3% during the second quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider’s stock worth $149,000 after acquiring an additional 90 shares during the period. Prosperity Consulting Group LLC boosted its holdings in shares of Paychex by 1.4% during the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock worth $922,000 after acquiring an additional 100 shares during the period. Finally, Zacks Investment Management grew its position in shares of Paychex by 5.1% in the third quarter. Zacks Investment Management now owns 2,094 shares of the business services provider’s stock valued at $265,000 after purchasing an additional 101 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

About Paychex

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.