BidaskClub upgraded shares of Paychex (NASDAQ:PAYX) from a hold rating to a buy rating in a research note published on Friday.
Several other analysts have also recently issued reports on PAYX. Royal Bank of Canada restated a sector perform rating and set a $63.00 price objective on shares of Paychex in a research note on Monday, April 2nd. JPMorgan Chase cut their price objective on Paychex from $69.00 to $65.00 and set a neutral rating on the stock in a research note on Tuesday, March 27th. Morgan Stanley dropped their price target on Paychex from $68.00 to $66.00 and set an equal weight rating on the stock in a research report on Tuesday, March 27th. BMO Capital Markets reiterated a hold rating and set a $70.00 price target on shares of Paychex in a research report on Wednesday, January 24th. Finally, Barclays dropped their price target on Paychex from $75.00 to $70.00 and set an equal weight rating on the stock in a research report on Tuesday, March 27th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and two have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $64.94.
Paychex traded up $0.40, hitting $64.82, on Friday, according to Marketbeat Ratings. 1,700,599 shares of the stock traded hands, compared to its average volume of 2,280,317. Paychex has a twelve month low of $54.20 and a twelve month high of $73.10. The stock has a market capitalization of $23.14 billion, a P/E ratio of 29.46, a PEG ratio of 3.16 and a beta of 0.98.
Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Monday, March 26th. The business services provider reported $0.63 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.01. Paychex had a return on equity of 43.42% and a net margin of 27.22%. The firm had revenue of $866.50 million for the quarter, compared to analysts’ expectations of $853.99 million. During the same quarter in the prior year, the firm posted $0.55 earnings per share. Paychex’s revenue for the quarter was up 8.9% compared to the same quarter last year. research analysts anticipate that Paychex will post 2.49 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, May 24th. Stockholders of record on Wednesday, May 9th will be given a dividend of $0.56 per share. This represents a $2.24 dividend on an annualized basis and a dividend yield of 3.46%. This is a boost from Paychex’s previous quarterly dividend of $0.50. The ex-dividend date is Tuesday, May 8th. Paychex’s dividend payout ratio is presently 101.82%.
In related news, insider Michael E. Gioja sold 110,000 shares of the stock in a transaction that occurred on Thursday, March 29th. The stock was sold at an average price of $61.63, for a total value of $6,779,300.00. Following the completion of the transaction, the insider now directly owns 170,974 shares of the company’s stock, valued at approximately $10,537,127.62. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph M. Velli sold 3,079 shares of the stock in a transaction that occurred on Friday, May 18th. The stock was sold at an average price of $65.00, for a total value of $200,135.00. Following the completion of the transaction, the director now directly owns 29,013 shares of the company’s stock, valued at $1,885,845. The disclosure for this sale can be found here. 11.70% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of PAYX. American International Group Inc. grew its holdings in Paychex by 1,975.5% in the 4th quarter. American International Group Inc. now owns 7,203,048 shares of the business services provider’s stock worth $490,384,000 after buying an additional 6,856,001 shares in the last quarter. Select Equity Group L.P. grew its holdings in Paychex by 12.9% in the 1st quarter. Select Equity Group L.P. now owns 8,689,359 shares of the business services provider’s stock worth $535,178,000 after buying an additional 995,527 shares in the last quarter. Millennium Management LLC bought a new position in Paychex in the 1st quarter worth approximately $43,805,000. Element Capital Management LLC bought a new position in Paychex in the 4th quarter worth approximately $43,783,000. Finally, Smith Asset Management Group LP bought a new position in Paychex in the 1st quarter worth approximately $26,952,000. 68.90% of the stock is owned by institutional investors and hedge funds.
Paychex Company Profile
Paychex, Inc provides payroll, human resource (HR), retirement, and insurance services for small to medium-sized businesses in the United States and Germany. The company offers payroll processing services that include payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.
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