UBS Group Cuts Paychex (NASDAQ:PAYX) Price Target to $140.00

Key Points

• UBS Group has lowered its price target for Paychex from $148.00 to $140.00, maintaining a "neutral" rating, indicating a potential upside of 5.03% from the current stock price.
• Despite the price target reduction, Paychex shares are currently trading at $133.30, up 1.3%, with a market capitalization of $47.94 billion.
• Recent insider trades show significant selling, with CEO John B. Gibson and Chairman Martin Mucci both reducing their holdings in the company.

Paychex (NASDAQ:PAYX - Get Free Report) had its target price reduced by UBS Group from $148.00 to $140.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the business services provider's stock. UBS Group's price objective suggests a potential upside of 5.03% from the company's current price.

Other equities research analysts also recently issued research reports about the company. BMO Capital Markets assumed coverage on Paychex in a research report on Thursday, July 10th. They set a "market perform" rating and a $160.00 price objective on the stock. JPMorgan Chase & Co. raised their price objective on Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research report on Thursday, August 14th. Jefferies Financial Group set a $140.00 price objective on Paychex and gave the company a "hold" rating in a research report on Thursday, June 26th. Barclays set a $155.00 price objective on Paychex and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. Finally, Morgan Stanley lowered their price target on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a report on Friday, June 27th. Ten equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Paychex currently has an average rating of "Reduce" and an average price target of $149.20.

Paychex Stock Up 1.3%

Shares of Paychex stock traded up $1.68 during trading on Wednesday, hitting $133.30. 342,799 shares of the stock traded hands, compared to its average volume of 2,126,197. The firm has a market cap of $47.94 billion, a P/E ratio of 29.16, a price-to-earnings-growth ratio of 3.02 and a beta of 0.91. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. Paychex has a 52-week low of $130.24 and a 52-week high of $161.24. The stock's fifty day simple moving average is $139.90 and its 200 day simple moving average is $146.28.

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 for the quarter, meeting analysts' consensus estimates of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the company earned $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. On average, equities analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction on 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. This represents a 13.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total value 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. This trade represents a 17.91% decrease in their position. 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 hedge funds have recently bought and sold shares of the company. Milestones Private Investment Advisors LLC purchased a new position in Paychex during the second quarter worth $1,270,000. Osaic Holdings Inc. grew its holdings in shares of Paychex by 13.2% during the second quarter. Osaic Holdings Inc. now owns 113,005 shares of the business services provider's stock valued at $16,533,000 after purchasing an additional 13,214 shares during the last quarter. American Trust raised its position in shares of Paychex by 7.3% during the 2nd quarter. American Trust now owns 24,564 shares of the business services provider's stock worth $3,573,000 after purchasing an additional 1,669 shares during the period. Orion Porfolio Solutions LLC grew its holdings in Paychex by 6.7% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 49,251 shares of the business services provider's stock worth $7,164,000 after buying an additional 3,095 shares in the last quarter. Finally, Thrivent Financial for Lutherans lifted its position in Paychex by 32.8% in the second quarter. Thrivent Financial for Lutherans now owns 28,251 shares of the business services provider's stock worth $4,095,000 after purchasing an additional 6,971 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.

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.

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