Paychex (NASDAQ:PAYX) Price Target Lowered to $125.00 at Royal Bank Of Canada

Paychex (NASDAQ:PAYX) had its target price lowered by Royal Bank Of Canada from $150.00 to $125.00 in a note issued to investors on Friday,MarketScreener reports. The firm currently has a “sector perform” rating on the business services provider’s stock. Royal Bank Of Canada’s price target indicates a potential upside of 10.56% from the stock’s current price.

PAYX has been the subject of several other research reports. Citigroup initiated coverage on Paychex in a report on Thursday, October 23rd. They issued a “neutral” rating and a $139.00 price target for the company. Morgan Stanley upped their target price on Paychex from $132.00 to $133.00 and gave the company an “equal weight” rating in a research note on Monday, October 20th. BMO Capital Markets reduced their target price on Paychex from $143.00 to $140.00 and set a “market perform” rating for the company in a research report on Wednesday, October 1st. UBS Group lowered their price target on shares of Paychex from $140.00 to $132.00 and set a “neutral” rating on the stock in a report on Thursday, October 2nd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a report on Monday. Fourteen equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $136.40.

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $113.07 on Friday. The company has a market cap of $40.69 billion, a P/E ratio of 25.41 and a beta of 0.91. Paychex has a 12 month low of $108.00 and a 12 month high of $161.24. The business’s 50 day moving average is $118.69 and its two-hundred day moving average is $135.29. 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 posted its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.02. The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The business’s revenue was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.16 EPS. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, equities analysts expect that Paychex will post 4.99 EPS for the current year.

Hedge Funds Weigh In On Paychex

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in Paychex by 17.2% during the 3rd quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock worth $4,787,151,000 after buying an additional 5,549,511 shares in the last quarter. State Street Corp lifted its stake in shares of Paychex by 2.6% during the second quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock valued at $2,046,050,000 after acquiring an additional 355,294 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Paychex by 2.3% in the second quarter. Charles Schwab Investment Management Inc. now owns 11,033,312 shares of the business services provider’s stock valued at $1,604,906,000 after acquiring an additional 251,139 shares during the last quarter. Geode Capital Management LLC raised its holdings in Paychex by 2.8% during the 2nd quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock worth $1,481,053,000 after purchasing an additional 274,947 shares during the last quarter. Finally, Northern Trust Corp lifted its position in Paychex by 3.8% during the 1st quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider’s stock valued at $769,731,000 after purchasing an additional 181,628 shares during the period. 83.47% of the stock is owned by institutional investors.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), 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.