Paychex (NASDAQ:PAYX) Hits New 52-Week Low – Time to Sell?

Paychex, Inc. (NASDAQ:PAYX)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $99.68 and last traded at $101.1880, with a volume of 188826 shares. The stock had previously closed at $102.47.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on PAYX. Royal Bank Of Canada cut their price objective on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a report on Friday, December 5th. Citigroup cut their price objective on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research report on Monday, December 22nd. 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. Wells Fargo & Company lowered their target price on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Finally, JPMorgan Chase & Co. cut their price target on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $123.94.

Paychex Stock Performance

The company has a market capitalization of $35.00 billion, a P/E ratio of 22.13 and a beta of 0.90. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The firm has a 50 day moving average price of $111.12 and a two-hundred day moving average price of $123.20.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The firm had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the company posted $1.14 EPS. The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, research analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be given a dividend of $1.08 per share. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.4%. Paychex’s dividend payout ratio is 97.96%.

Paychex declared that its Board of Directors has authorized a share buyback program on Friday, January 16th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to repurchase up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Heartwood Wealth Advisors LLC acquired a new position in shares of Paychex in the third quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC acquired a new position in Paychex in the 3rd quarter valued at $27,000. Cornerstone Planning Group LLC grew its stake in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. NewSquare Capital LLC increased its position in Paychex by 83.8% during the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after acquiring an additional 98 shares during the period. Finally, Stance Capital LLC bought a new stake in Paychex in the 3rd quarter valued at about $31,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

About Paychex

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.