Paychex, Inc. (NASDAQ:PAYX) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Paychex, Inc. has received an average rating of "Reduce" from eleven analysts, with one sell rating and ten hold ratings, reflecting cautious sentiment amid fluctuating price objectives.
• CEO John B. Gibson sold over 12,000 shares recently, resulting in a decrease in his ownership stake by 13.14%, highlighting potential concerns about insider confidence.
• The company recently announced a quarterly dividend of $1.08 per share, reflecting a 3.3% dividend yield and a high dividend payout ratio of 94.53%.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report) has been given an average rating of "Reduce" by the eleven brokerages that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell rating and ten have given a hold rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $149.20.

Several analysts have recently weighed in on PAYX shares. Stifel Nicolaus decreased their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a report on Thursday, June 26th. JPMorgan Chase & Co. lifted their price objective on Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a report on Thursday, August 14th. Citigroup decreased their price objective on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a report on Thursday, August 21st. BMO Capital Markets started coverage on Paychex in a report on Thursday, July 10th. They set a "market perform" rating and a $160.00 price objective on the stock. Finally, Royal Bank Of Canada set a $165.00 price objective on Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th.

Insider Buying and Selling at Paychex

In other news, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the transaction, the chairman directly owned 446,917 shares in the company, valued at approximately $64,878,940.89. The trade was a 17.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total value of $1,755,550.40. Following the transaction, the chief executive officer owned 81,755 shares of the company's stock, valued at $11,602,669.60. The trade was a 13.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Paychex

Several institutional investors have recently modified their holdings of the business. Summit Wealth Partners LLC lifted its stake in Paychex by 2.4% in the 1st quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock valued at $467,000 after acquiring an additional 70 shares in the last quarter. LGT Group Foundation increased its position in shares of Paychex by 2.8% during the 1st quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock worth $390,000 after purchasing an additional 70 shares during the last quarter. Golden State Equity Partners increased its holdings in shares of Paychex by 0.9% during the 1st quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after acquiring an additional 71 shares during the last quarter. Brighton Jones LLC increased its holdings in shares of Paychex by 1.0% during the 2nd quarter. Brighton Jones LLC now owns 6,954 shares of the business services provider's stock worth $1,012,000 after acquiring an additional 71 shares during the last quarter. Finally, Palumbo Wealth Management LLC increased its holdings in shares of Paychex by 2.4% during the 1st quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after acquiring an additional 74 shares during the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Stock Down 0.8%

Shares of PAYX traded down $1.11 during midday trading on Friday, reaching $130.00. 7,782,862 shares of the stock were exchanged, compared to its average volume of 2,326,958. Paychex has a 12-month low of $129.33 and a 12-month high of $161.24. The firm has a 50 day simple moving average of $139.08 and a 200-day simple moving average of $145.83. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. The company has a market cap of $46.75 billion, a price-to-earnings ratio of 28.45, a P/E/G ratio of 2.98 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 earnings per share for the quarter, meeting analysts' consensus estimates of $1.19. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%.During the same period last year, the business earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. Research analysts forecast that Paychex will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, July 21st were given a $1.08 dividend. The ex-dividend date was Monday, July 21st. This represents a $4.32 annualized dividend and a yield of 3.3%. Paychex's payout ratio is presently 94.53%.

Paychex Company Profile

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.