Morgan Stanley Raises Paychex Price Target to $142.00

Morgan Stanley has increased its price target for Paychex (NASDAQ:PAYX) from $137.00 to $142.00, according to a research note shared with investors on Thursday. The brokerage continues to rate Paychex's stock as "equal weight," suggesting that investors should hold onto their shares rather than buy or sell aggressively.

Market Reaction and Analyst Ratings

This new target implies a potential downside of about 5.55% from Paychex's current trading price. Other research firms have also updated their views on Paychex shares recently. For instance, Stifel Nicolaus raised its price target from $141.00 to $156.00 while maintaining a "hold" rating. Citigroup has also increased its target from $145.00 to $158.00, giving a neutral rating. Additionally, Royal Bank of Canada reaffirmed a "sector perform" rating with a target price of $148. Lastly, Barclays has set a price target of $140.00, up from $135.00, and maintains an "equal weight" rating.

Current Stock Performance

Currently, two analysts have assigned a sell rating to the stock, while ten have issued hold ratings. As of now, the average consensus rating for Paychex is "Hold" with a consensus price target set at $137.58.

On Thursday, Paychex shares traded up by $0.16, reaching a price of $150.35, with a total trading volume of 1,254,611 shares, which is lower than its average volume of 1,796,835 shares. The stock has exhibited a 12-month low of $114.72 and a high of $158.37. Paychex has a market capitalization of $54.14 billion and operates with a P/E ratio of 31.65.

Latest Earnings Report

Paychex recently announced its quarterly earnings on March 26. The company reported earnings of $1.49 per share, surpassing the consensus estimate of $1.48 by $0.01. The revenue of $1.51 billion matched what analysts predicted. Year-over-year, Paychex's revenue has grown by 4.8% compared to the same quarter last year.

Institutional Investor Activity

Several institutional investors have adjusted their positions in Paychex recently. For example, Quest Partners LLC established a new position worth about $36,000 in the third quarter. Larson Financial Group LLC increased its holdings by 23.6%, now owning 613 shares valued at approximately $82,000. The Manufacturers Life Insurance Company raised its position by 0.6% during the same period. Other investors, like Avestar Capital LLC and Townsquare Capital LLC, have also been increasing their stakes in the company. Overall, institutional ownership stands at 83.47% of Paychex stock.

Paychex Overview

Paychex, Inc. provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services targeted toward small and medium-sized businesses across the U.S., Europe, and India. Services include payroll processing, payroll tax administration, employee payment services, and regulatory compliance.

Further Insights

Understanding Paychex’s performance, analysts provide insights into whether the current price presents a good buying opportunity or if investors should wait for further market developments. Investors are encouraged to consider expert opinions and analyze market trends carefully before making investment decisions.

Paychex, MorganStanley, Investment