Paychex (NASDAQ:PAYX) Stock Falls 5.4% – Here’s Why

Shares of Paychex, Inc. (NASDAQ:PAYX) were down 5.4% during mid-day trading on Tuesday. The company traded as low as $109.67 and last traded at $109.4970. 1,713,907 shares traded hands during trading, a decline of 50% from the average daily volume of 3,449,825 shares. The stock had previously closed at $115.70.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Bank of America decreased their price target on Paychex from $450.00 to $225.00 in a research note on Wednesday, July 15th. Stephens decreased their target price on shares of Paychex from $132.00 to $113.00 and set an “equal weight” rating for the company in a research report on Thursday, September 24th. Stifel Nicolaus lowered their target price on shares of Paychex from $130.00 to $112.00 and set a “hold” rating on the stock in a report on Thursday, September 24th. Wells Fargo & Company raised their price target on shares of Paychex from $95.00 to $111.00 and gave the company an “underweight” rating in a research report on Wednesday, September 9th. Finally, Robert W. Baird cut their price target on Paychex from $125.00 to $110.00 and set a “neutral” rating for the company in a research note on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $127.88.

Paychex Trading Up 1.0%

The stock has a market capitalization of $38.91 billion, a PE ratio of 21.70, a price-to-earnings-growth ratio of 2.48 and a beta of 0.86. The firm has a 50-day moving average price of $113.28 and a 200-day moving average price of $103.62. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.23.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.02. The company had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.63 billion. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The firm’s revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, October 26th will be paid a $1.19 dividend. The ex-dividend date is Monday, October 26th. This represents a $4.76 annualized dividend and a yield of 4.4%. Paychex’s dividend payout ratio is presently 94.44%.

Insider Buying and Selling

In other news, Director Joseph Velli sold 7,839 shares of the company’s stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $107.68, for a total transaction of $844,103.52. Following the transaction, the director owned 81,725 shares of the company’s stock, valued at $8,800,148. This represents a 8.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Paychex

Large investors have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust grew its position in Paychex by 6.3% in the second quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider’s stock worth $149,000 after acquiring an additional 90 shares in the last quarter. Seelaus Asset Management LLC raised its position in Paychex by 2.0% during the first quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider’s stock valued at $503,000 after purchasing an additional 107 shares during the period. United Community Bank raised its position in Paychex by 3.1% during the second quarter. United Community Bank now owns 3,635 shares of the business services provider’s stock valued at $357,000 after purchasing an additional 110 shares during the period. Bryn Mawr Trust Advisors LLC raised its position in Paychex by 4.3% during the first quarter. Bryn Mawr Trust Advisors LLC now owns 2,678 shares of the business services provider’s stock valued at $247,000 after purchasing an additional 111 shares during the period. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Paychex by 45.5% in the 2nd quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider’s stock valued at $39,000 after purchasing an additional 125 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Company Profile

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.