Paychex, Inc. (NASDAQ:PAYX) Receives Consensus Rating of “Reduce” from Brokerages
by Mitch Edgeman · The Markets DailyShares of Paychex, Inc. (NASDAQ:PAYX – Get Free Report) have been assigned a consensus recommendation of “Reduce” from the nineteen analysts that are currently covering the stock, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a sell recommendation, fourteen have issued a hold recommendation and one has issued a buy recommendation on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $121.3750.
Several research analysts have weighed in on PAYX shares. Royal Bank Of Canada decreased their price target on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research report on Thursday. Stifel Nicolaus cut their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a research report on Wednesday, December 17th. Morgan Stanley reduced their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Cantor Fitzgerald raised Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Finally, BMO Capital Markets lowered their target price on Paychex from $121.00 to $103.00 and set a “market perform” rating on the stock in a research report on Friday, March 13th.
Read Our Latest Research Report on Paychex
Paychex Price Performance
Shares of NASDAQ:PAYX opened at $91.71 on Friday. The firm’s 50 day moving average price is $98.91 and its 200-day moving average price is $112.79. Paychex has a twelve month low of $86.89 and a twelve month high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The stock has a market capitalization of $32.92 billion, a PE ratio of 20.80 and a beta of 0.91.
Paychex (NASDAQ:PAYX – Get Free Report) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter last year, the firm posted $1.14 earnings per share. The firm’s revenue was up 18.3% compared to the same quarter last year. Equities research analysts expect that Paychex will post 4.99 EPS for the current year.
Paychex Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s payout ratio is presently 97.96%.
Paychex declared that its board has authorized a share buyback plan on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.
Institutional Investors Weigh In On Paychex
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after purchasing an additional 4,583,157 shares during the period. Capital International Investors increased its stake in shares of Paychex by 59.1% in the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. State Street Corp raised its position in shares of Paychex by 2.6% during the 2nd quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock valued at $2,046,050,000 after purchasing an additional 355,294 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of Paychex by 2.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock valued at $1,295,698,000 after purchasing an additional 263,152 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Paychex by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider’s stock valued at $1,093,958,000 after buying an additional 78,760 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.
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.