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

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

PAYX has been the topic of several other reports. Barclays dropped their price objective on shares of Paychex from $126.00 to $120.00 and set an “equal weight” rating on the stock in a research note on Friday, December 22nd. TD Cowen restated a “market perform” rating and set a $123.00 target price (down from $132.00) on shares of Paychex in a research report on Friday, December 22nd. Royal Bank of Canada restated a “sector perform” rating and set a $130.00 target price on shares of Paychex in a research report on Friday, December 22nd. Evercore ISI restated an “in-line” rating and set a $118.00 target price on shares of Paychex in a research report on Tuesday, March 26th. Finally, Citigroup decreased their target price on shares of Paychex from $130.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 26th. Two research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to data from MarketBeat.com, Paychex presently has an average rating of “Hold” and an average price target of $122.77.

Get Our Latest Report on Paychex

Paychex Stock Performance

Shares of Paychex stock opened at $122.20 on Wednesday. The firm’s fifty day simple moving average is $121.99 and its 200-day simple moving average is $119.57. The stock has a market capitalization of $43.97 billion, a price-to-earnings ratio of 27.13, a PEG ratio of 3.29 and a beta of 0.93. Paychex has a 12 month low of $104.09 and a 12 month high of $129.70. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.23 and a quick ratio of 1.23.

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

Paychex declared that its board has approved a share buyback plan on Friday, January 19th that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the business services provider to reacquire up to 0.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, VP Mark Anthony Bottini sold 15,481 shares of the company’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the completion of the transaction, the vice president now owns 82,690 shares of the company’s stock, valued at approximately $9,966,625.70. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 11.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Confluence Investment Management LLC acquired a new position in shares of Paychex during the 1st quarter valued at about $146,617,000. General Partner Inc. acquired a new stake in Paychex during the 1st quarter worth approximately $76,000. Nomura Holdings Inc. acquired a new stake in Paychex during the 4th quarter worth approximately $774,000. HighPoint Advisor Group LLC acquired a new stake in Paychex during the 4th quarter worth approximately $642,000. Finally, Fairman Group LLC acquired a new stake in Paychex during the 4th quarter worth approximately $65,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Company Profile

(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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