Paychex (PAYX) Announces Up to $1B Share Buyback Program, Replacing $400M Authorization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Share Buyback Program: Paychex has announced a share buyback program of up to $1 billion, replacing its previous authorization of $400 million, indicating strong confidence in future growth prospects.
- Shareholder Returns: In fiscal 2025, Paychex returned over $1.5 billion to shareholders through cash dividends and share repurchases, further enhancing investor trust in the company's financial health.
- Stock Price Reaction: Following the announcement, Paychex shares rose 0.04% in pre-market trading to $110.56, reflecting a positive market response to the buyback plan.
- Improved Earnings Outlook: Paychex raised its adjusted EPS growth outlook for fiscal 2026 to 10%-11% while accelerating AI integration, demonstrating the company's strategic focus on innovation and profitability.
Analyst Views on PAYX
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 135.00 USD with a low forecast of 126.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 110.510
Low
126.00
Averages
135.00
High
150.00
Current: 110.510
Low
126.00
Averages
135.00
High
150.00
About PAYX
Paychex, Inc. is a human capital management (HCM) company. The Company is engaged in delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. It is a provider of integrated HCM solutions for human resources (HR), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (U.S.) and parts of Europe. It supports its small-business clients by utilizing its proprietary, software as a service (SaaS) Paychex Flex platform and the Company’s SurePayroll SaaS-based solutions. Its HR solutions include HR packages, HR consulting, employee onboarding, hiring services, and artificial intelligence -assisted recruiting. Its payroll services include payroll packages, small business payroll, midsize to enterprise payroll, switch payroll companies, and payroll tax services. Its employee benefits services include Group health insurance, retirement services, and benefits administration services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
