Paychex (NASDAQ:PAYX) Hits New 52-Week Low – Here’s What Happened

Paychex, Inc. (NASDAQ:PAYX)’s share price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $107.63 and last traded at $107.4880, with a volume of 1733758 shares trading hands. The stock had previously closed at $111.18.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Royal Bank Of Canada decreased their price target 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. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Jefferies Financial Group set a $110.00 target price on shares of Paychex in a research note on Friday, December 19th. Wells Fargo & Company cut their price objective on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Finally, Cowen restated a “hold” rating on shares of Paychex in a research report on Monday, December 1st. One investment analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $125.67.

Paychex Trading Down 3.4%

The company has a market cap of $38.56 billion, a P/E ratio of 24.36 and a beta of 0.91. The firm’s 50 day moving average is $112.25 and its two-hundred day moving average is $125.97. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be issued a $1.08 dividend. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.0%. Paychex’s dividend payout ratio is presently 97.96%.

Paychex announced that its board has authorized a share repurchase plan on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Paychex

A number of institutional investors have recently modified their holdings of PAYX. Heartwood Wealth Advisors LLC bought a new position in Paychex during the third quarter worth $25,000. NewSquare Capital LLC grew its holdings in Paychex by 83.8% during the 2nd 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. Vermillion & White Wealth Management Group LLC bought a new position in shares of Paychex in the 3rd quarter worth about $27,000. Stance Capital LLC acquired a new position in shares of Paychex in the 3rd quarter valued at about $31,000. Finally, MMA Asset Management LLC bought a new stake in shares of Paychex during the 3rd quarter valued at about $32,000. 83.47% of the stock is 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.