Paychex (NASDAQ:PAYX) Sets New 12-Month Low - Here's What Happened

Key Points

• Paychex's share price hit a new 52-week low at $131.78, marking a decline of 2.3% from its previous close of $135.11.
• Several analysts have adjusted their target prices for Paychex, with UBS Group lowering it to $145.00 and Citigroup to $148.00, maintaining a consensus rating of "Reduce."
• Paychex recently declared a $1.08 quarterly dividend, reflecting a dividend yield of 3.3%, while its payout ratio stands at 94.53%.

Shares of Paychex, Inc. (NASDAQ:PAYX - Get Free Report) reached a new 52-week low on Monday . The company traded as low as $131.78 and last traded at $132.15, with a volume of 1288516 shares trading hands. The stock had previously closed at $135.11.

Analyst Ratings Changes

Several analysts recently issued reports on the company. UBS Group decreased their target price on Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a research note on Thursday, June 26th. Jefferies Financial Group set a $140.00 target price on Paychex and gave the company a "hold" rating in a research note on Thursday, June 26th. Morgan Stanley decreased their target price on Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research note on Friday, June 27th. BMO Capital Markets assumed coverage on Paychex in a research note on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Finally, Citigroup decreased their target price on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Ten equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $149.70.

Paychex Stock Down 2.3%

The firm has a market capitalization of $47.46 billion, a PE ratio of 28.88, a PEG ratio of 3.09 and a beta of 0.91. The company has a fifty day moving average price of $140.16 and a 200-day moving average price of $146.38. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28.

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 (EPS) for the quarter, hitting the consensus estimate of $1.19. The business had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%.During the same period in the prior year, the firm earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. As a group, analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

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

Insider Activity at Paychex

In other news, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction that occurred on 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 sale, the chairman directly owned 446,917 shares of the company's stock, valued at $64,878,940.89. This represents a 17.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the transaction, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This represents a 13.14% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Paychex

Several large investors have recently modified their holdings of PAYX. Norges Bank bought a new position in shares of Paychex during the 2nd quarter valued at approximately $302,244,000. Select Equity Group L.P. increased its position in shares of Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock valued at $539,102,000 after purchasing an additional 1,738,372 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Paychex by 20,236.7% during the 1st quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock valued at $177,899,000 after purchasing an additional 1,147,419 shares during the last quarter. Nuveen LLC bought a new position in Paychex in the 1st quarter valued at $134,192,000. Finally, Charles Schwab Investment Management Inc. grew its position in Paychex by 7.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock valued at $1,663,474,000 after acquiring an additional 737,542 shares during the last quarter. Institutional investors own 83.47% of the company's stock.

About Paychex

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.