Cantor Fitzgerald Upgrades Paychex (NASDAQ:PAYX) to “Strong Sell”

Paychex (NASDAQ:PAYX) was upgraded by research analysts at Cantor Fitzgerald to a “strong sell” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other research analysts also recently weighed in on PAYX. UBS Group decreased their target price on shares of Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a research report on Thursday, October 2nd. Wells Fargo & Company reduced their price target on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. Argus dropped their target price on shares of Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a report on Friday, January 2nd. TD Cowen reaffirmed a “hold” rating on shares of Paychex in a report on Monday, December 1st. Finally, JPMorgan Chase & Co. lowered their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $123.94.

Paychex Price Performance

PAYX opened at $104.94 on Tuesday. The stock has a market cap of $37.67 billion, a P/E ratio of 23.80 and a beta of 0.91. Paychex has a 12 month low of $103.69 and a 12 month high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The company has a fifty day simple moving average of $111.70 and a 200 day simple moving average of $124.33.

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

Paychex announced that its Board of Directors has initiated a stock repurchase plan on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Institutional Trading of Paychex

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Heartwood Wealth Advisors LLC bought a new position in shares of Paychex in the 3rd quarter valued at $25,000. Vermillion & White Wealth Management Group LLC bought a new position in Paychex in the third quarter valued at about $27,000. NewSquare Capital LLC boosted its stake in shares of Paychex by 83.8% during the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock valued at $31,000 after purchasing an additional 98 shares in the last quarter. Stance Capital LLC bought a new stake in shares of Paychex during the third quarter worth about $31,000. Finally, MMA Asset Management LLC acquired a new position in shares of Paychex in the third quarter valued at approximately $32,000. Institutional investors 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.