Royal Bank Of Canada Has Lowered Expectations for Paychex (NASDAQ:PAYX) Stock Price

Paychex (NASDAQ:PAYX) had its price objective dropped by stock analysts at Royal Bank Of Canada from $125.00 to $102.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a “sector perform” rating on the business services provider’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 10.21% from the stock’s previous close.

PAYX has been the subject of several other research reports. Morgan Stanley cut their price target on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Stephens decreased their price objective on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Stifel Nicolaus dropped their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. Finally, TD Cowen reissued a “hold” rating on shares of Paychex in a research note on Monday, December 1st. One equities research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $121.38.

Paychex Stock Up 0.9%

Shares of PAYX opened at $92.55 on Thursday. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex has a 12 month low of $86.89 and a 12 month high of $161.24. The stock’s 50 day moving average is $98.48 and its two-hundred day moving average is $112.47. The firm has a market cap of $33.22 billion, a P/E ratio of 20.99 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping 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 business had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period in the prior year, the company posted $1.14 EPS. The business’s quarterly revenue was up 18.3% on a year-over-year basis. Analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex announced that its board has initiated a share buyback program on Friday, January 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Paychex

Hedge funds and other institutional investors have recently modified their holdings of the business. Heartwood Wealth Advisors LLC purchased a new stake in Paychex during the 3rd quarter valued at about $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in Paychex in the 3rd quarter worth approximately $27,000. Cornerstone Planning Group LLC lifted its stake in Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock worth $30,000 after purchasing an additional 268 shares in the last quarter. Stance Capital LLC acquired a new position in shares of Paychex during the 3rd quarter worth approximately $31,000. Finally, Hilton Head Capital Partners LLC acquired a new position in shares of Paychex during the 4th quarter worth approximately $31,000. 83.47% of the stock is owned by hedge funds and other 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.