Paychex (NASDAQ:PAYX) Given New $96.00 Price Target at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald lowered Paychex’s price target from $112 to $96 and maintained an “underweight” rating, implying about 5.3% downside from the stock’s $101.37 opening price.
• Analyst sentiment remains cautious: Paychex has a consensus “Hold” rating and an average price target of $127.59, with 13 Holds, two Buys, one Strong Buy, and two Sells.
• Despite the target cuts, Paychex exceeded quarterly EPS expectations by reporting $1.34 versus $1.32 estimated, while revenue rose 5.9% year over year to $1.63 billion.

Paychex (NASDAQ:PAYX - Get Free Report) had its target price lowered by equities researchers at Cantor Fitzgerald from $112.00 to $96.00 in a report released on Monday, Benzinga reports. The firm presently has an "underweight" rating on the business services provider's stock. Cantor Fitzgerald's target price would indicate a potential downside of 5.30% from the company's current price.

Several other analysts also recently issued reports on PAYX. Morgan Stanley boosted their price objective on Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Wells Fargo & Company increased their price objective on Paychex from $95.00 to $111.00 and gave the stock an "underweight" rating in a research note on Wednesday, September 9th. Robert W. Baird decreased their price target on shares of Paychex from $125.00 to $110.00 and set a "neutral" rating for the company in a report on Monday. Bank of America dropped their price target on shares of Paychex from $450.00 to $225.00 in a research note on Wednesday, July 15th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $130.00 price target on shares of Paychex in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Paychex presently has a consensus rating of "Hold" and an average price target of $127.59.

Paychex Price Performance

Shares of PAYX stock opened at $101.37 on Monday. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.28 and a current ratio of 1.28. The stock has a market cap of $36.06 billion, a PE ratio of 20.11, a price-to-earnings-growth ratio of 2.13 and a beta of 0.82. The business's fifty day moving average is $118.52 and its 200-day moving average is $104.12. Paychex has a 1 year low of $85.45 and a 1 year high of $130.32.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, topping the consensus estimate of $1.32 by $0.02. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The firm had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.63 billion. During the same period in the previous year, the business earned $1.22 earnings per share. Paychex's revenue for the quarter was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Equities analysts expect that Paychex will post 5.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Robert Schrader sold 2,600 shares of the company's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.60% of the stock is currently owned by insiders.

Institutional Trading of Paychex

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Parkside Financial Bank & Trust grew its stake in 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 buying an additional 90 shares during the last quarter. Armbruster Capital Management Inc. raised its stake in shares of Paychex by 0.5% in the first quarter. Armbruster Capital Management Inc. now owns 20,299 shares of the business services provider's stock valued at $1,870,000 after acquiring an additional 107 shares during the last quarter. Seelaus Asset Management LLC boosted its holdings in shares of Paychex by 2.0% in the 1st quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider's stock worth $503,000 after acquiring an additional 107 shares in the last quarter. United Community Bank boosted its holdings in shares of Paychex by 3.1% in the 2nd quarter. United Community Bank now owns 3,635 shares of the business services provider's stock worth $357,000 after acquiring an additional 110 shares in the last quarter. Finally, Bryn Mawr Trust Advisors LLC grew its position in Paychex by 4.3% during the 1st quarter. Bryn Mawr Trust Advisors LLC now owns 2,678 shares of the business services provider's stock worth $247,000 after acquiring an additional 111 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

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.

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