Stephens Cuts Paychex (NASDAQ:PAYX) Price Target to $125.00

Paychex (NASDAQ:PAYX) had its price objective dropped by analysts at Stephens from $135.00 to $125.00 in a report released on Monday,MarketScreener reports. The firm presently has an “equal weight” rating on the business services provider’s stock. Stephens’ price target indicates a potential upside of 10.81% from the stock’s current price.

A number of other research firms have also commented on PAYX. BMO Capital Markets dropped their price objective on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Citigroup reaffirmed a “neutral” rating on shares of Paychex in a report on Monday. Royal Bank Of Canada cut their price target on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a report on Friday, December 5th. Cowen restated a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Finally, Wells Fargo & Company cut their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research note on Tuesday, December 9th. Fourteen research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $128.27.

Paychex Stock Performance

PAYX stock opened at $112.81 on Monday. The firm has a 50 day moving average of $116.08 and a two-hundred day moving average of $131.61. Paychex has a 12 month low of $108.00 and a 12 month high of $161.24. The company has a market capitalization of $40.60 billion, a price-to-earnings ratio of 25.46 and a beta of 0.91. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the prior year, the company posted $1.14 EPS. The firm’s revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Institutional Investors Weigh In On Paychex

A number of large investors have recently bought and sold shares of the business. Farmers National Bank acquired a new stake in Paychex in the 3rd quarter valued at about $315,000. Allworth Financial LP grew its stake in shares of Paychex by 1.1% during the third quarter. Allworth Financial LP now owns 11,884 shares of the business services provider’s stock valued at $1,506,000 after purchasing an additional 124 shares during the last quarter. IFP Advisors Inc increased its holdings in shares of Paychex by 8.5% in the third quarter. IFP Advisors Inc now owns 7,468 shares of the business services provider’s stock valued at $947,000 after purchasing an additional 586 shares in the last quarter. Groupama Asset Managment raised its position in Paychex by 70.4% in the 3rd quarter. Groupama Asset Managment now owns 6,084 shares of the business services provider’s stock worth $771,000 after purchasing an additional 2,514 shares during the last quarter. Finally, Vermillion & White Wealth Management Group LLC acquired a new position in Paychex during the 3rd quarter worth $27,000. 83.47% of the stock is currently owned by 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.