Paychex Stock In Focus With Potential Acquisition Of Paycor: Retail’s Bullish
By Stocktwits Inc | First Published Jan 6, 2025, 1:56 PM ISTThe acquisition would mark Rochester, New York-based Paychex’s largest acquisition to date, according to the report.
Shares of Paychex ($PAYX) were in the spotlight as media reports emerged the company was in talks to buy Paycor HCM Inc, a smaller rival. Retail sentiment remained bullish.
A deal could be made public in the coming week, Bloomberg reported, citing people familiar with the matter. A potential transaction would bring together two major players in the human resources software industry that is ripe for consolidation.
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The acquisition would mark Rochester, New York-based Paychex’s largest acquisition to date, according to the report.
Retail sentiment on Stocktwits was ‘bullish’ compared to ‘extremely bullish’ a month ago. While message volumes were in the ‘high’ zone.
Last week, Morgan Stanley raised the firm's price target to $137 from $133 with an ‘Equal Weight’ rating, The Fly.com reported. According to the analyst, with "a more conservative underwriting posture in the insurance agency" as well as hurricanes in Florida, the firm continues to execute well.
The analyst noted short interest in the company had moderated, with a slight Q2 beat and FY25 "likely enough for shares to work on the print so long as out-of-business rates remained stable" and "that dynamic played out as anticipated."
For the second quarter, Paychex posted earnings per share of $1.14, beating Wall Street estimates of $1.12. Its revenues stood at $1.32 billion, beating estimates of $1.31 billion.
Paychex stock is down 1% year-to-date.
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