Paychex (NASDAQ:PAYX) Earns Equal Weight Rating from Analysts at Stephens

Key Points

• Stephens initiated coverage of Paychex with an “equal weight” rating and a $132 price target, implying approximately 5.5% upside from the reported share price.
• Analyst sentiment remains cautious: Paychex has an average “Hold” rating and a consensus price target of $111, despite one Strong Buy and two Buy ratings.
• Paychex slightly exceeded quarterly expectations, reporting $1.32 in EPS versus $1.31 expected and $1.61 billion in revenue, up 12.5% year over year.

Equities researchers at Stephens started coverage on shares of Paychex (NASDAQ:PAYX - Get Free Report) in a report issued on Friday, Briefing.com reports. The firm set an "equal weight" rating and a $132.00 price target on the business services provider's stock. Stephens' price target would indicate a potential upside of 5.53% from the company's current price.

PAYX has been the subject of a number of other research reports. Stifel Nicolaus boosted their price target on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. Morgan Stanley increased their price objective on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. UBS Group raised their target price on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Citigroup boosted their target price on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, Weiss Ratings raised shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $111.00.

Paychex Trading Up 0.9%

Shares of PAYX stock opened at $125.08 on Friday. The stock has a market cap of $44.49 billion, a P/E ratio of 25.58, a price-to-earnings-growth ratio of 2.60 and a beta of 0.82. Paychex has a 1 year low of $85.45 and a 1 year high of $138.19. 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 stock has a 50 day simple moving average of $116.07 and a 200 day simple moving average of $101.83.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company's revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the company earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts predict that Paychex will post 5.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Paychex

In other news, CFO Robert L. Schrader sold 2,600 shares of the business's stock in a transaction dated Monday, July 20th. The stock was 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 approximately $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.80% of the company's stock.

Institutional Trading of Paychex

Institutional investors have recently modified their holdings of the business. Hilton Head Capital Partners LLC acquired a new position in Paychex during the 4th quarter worth about $31,000. Kingdom Financial Group LLC. acquired a new stake in shares of Paychex in the fourth quarter valued at about $33,000. Acumen Wealth Advisors LLC bought a new position in shares of Paychex during the fourth quarter worth about $34,000. Wealth Watch Advisors INC acquired a new position in shares of Paychex in the third quarter worth approximately $42,000. Finally, Field & Main Bank acquired a new position in shares of Paychex in the second quarter worth approximately $33,000. Institutional investors own 83.47% of the company's stock.

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.

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