Paychex, Inc. (NASDAQ:PAYX) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts remain neutral on Paychex: Seventeen analysts assign the stock a consensus “Hold” rating, with four sells, ten holds, two buys and one strong buy. The average 12-month price target is $108.20.
• Recent results exceeded expectations: Paychex reported quarterly EPS of $1.32 versus the $1.31 consensus and revenue of $1.61 billion, up 12.5% year over year. The company projects fiscal 2027 EPS of $5.90–$6.01.
• Paychex declared a $1.19 quarterly dividend: The annualized payout is $4.76 per share, representing a 3.9% yield, though the dividend payout ratio is high at 97.34%.

Shares of Paychex, Inc. (NASDAQ:PAYX - Get Free Report) have been given a consensus rating of "Hold" by the seventeen analysts that are currently covering the firm, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $108.20.

Several equities research analysts recently commented on PAYX shares. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Stifel Nicolaus lifted their target price on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. Morgan Stanley lifted their target price on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a research report on Thursday, May 28th. Finally, Citigroup increased their price target on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $121.30 on Wednesday. The firm has a market cap of $43.14 billion, a price-to-earnings ratio of 24.81 and a beta of 0.81. Paychex has a 1 year low of $85.45 and a 1 year high of $141.19. 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 business has a fifty day simple moving average of $107.53 and a 200 day simple moving average of $99.00.

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

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be issued a $1.19 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. Paychex's dividend payout ratio is currently 97.34%.

Insider Activity

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director directly owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 value of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Paychex

A number of large investors have recently added to or reduced their stakes in the stock. Cornerstone Planning Group LLC raised its position in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after purchasing an additional 268 shares during the period. Hilton Head Capital Partners LLC bought a new stake in shares of Paychex during the 4th quarter worth $31,000. Kingdom Financial Group LLC. acquired a new position in Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG grew its stake in Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after buying an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC bought a new position in Paychex in the 4th quarter worth $34,000. Institutional investors own 83.47% of the company's stock.

Paychex Company Profile

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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