Wedbush Reaffirms “Neutral” Rating for Paychex (NASDAQ:PAYX)

Paychex (NASDAQ:PAYXGet Free Report)‘s stock had its “neutral” rating restated by analysts at Wedbush in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $115.00 price target on the business services provider’s stock. Wedbush’s price target would indicate a potential downside of 5.89% from the company’s current price.

A number of other analysts have also recently commented on the stock. Citigroup lowered their price objective on shares of Paychex from $130.00 to $125.00 and set a “neutral” rating for the company in a research report on Tuesday, December 26th. Royal Bank of Canada restated a “sector perform” rating and issued a $130.00 price objective on shares of Paychex in a research report on Friday, December 22nd. Evercore ISI restated an “in-line” rating and issued a $118.00 price objective on shares of Paychex in a research report on Tuesday, March 26th. Barclays lowered their price objective on shares of Paychex from $126.00 to $120.00 and set an “equal weight” rating for the company in a research report on Friday, December 22nd. Finally, TD Cowen restated a “market perform” rating and issued a $123.00 price objective (down previously from $132.00) on shares of Paychex in a research report on Friday, December 22nd. Two investment analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $122.77.

Check Out Our Latest Stock Analysis on PAYX

Paychex Stock Up 0.1 %

NASDAQ:PAYX opened at $122.20 on Wednesday. The stock’s fifty day moving average price is $121.99 and its two-hundred day moving average price is $119.57. Paychex has a 52-week low of $104.09 and a 52-week high of $129.70. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.23 and a current ratio of 1.23. The company has a market cap of $43.97 billion, a price-to-earnings ratio of 27.13, a P/E/G ratio of 3.29 and a beta of 0.93.

Paychex (NASDAQ:PAYXGet Free Report) last posted its quarterly earnings results on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.37 by $0.01. The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.46 billion. Paychex had a return on equity of 46.37% and a net margin of 31.62%. The firm’s quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.29 EPS. On average, analysts anticipate that Paychex will post 4.72 EPS for the current year.

Paychex declared that its Board of Directors has authorized a stock buyback plan on Friday, January 19th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the business services provider to buy up to 0.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, VP Mark Anthony Bottini sold 15,481 shares of the firm’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $120.53, for a total value of $1,865,924.93. Following the completion of the sale, the vice president now directly owns 82,690 shares in the company, valued at approximately $9,966,625.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 11.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Paychex

Hedge funds have recently bought and sold shares of the stock. BKM Wealth Management LLC acquired a new stake in Paychex during the fourth quarter worth approximately $1,229,000. Nordea Investment Management AB lifted its position in Paychex by 218.8% during the fourth quarter. Nordea Investment Management AB now owns 680,257 shares of the business services provider’s stock worth $80,794,000 after acquiring an additional 466,890 shares during the last quarter. NBC Securities Inc. acquired a new stake in Paychex during the third quarter worth approximately $3,311,000. Comerica Bank acquired a new stake in Paychex during the second quarter worth approximately $8,123,000. Finally, Virginia Retirement Systems ET AL acquired a new stake in Paychex during the second quarter worth approximately $5,940,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

(Get Free Report)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, 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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Analyst Recommendations for Paychex (NASDAQ:PAYX)

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