Paychex, Inc. (NASDAQ:PAYX) Receives Consensus Rating of "Reduce" from Analysts

Shares of Paychex, Inc. (NASDAQ:PAYX - Get Free Report) have earned an average recommendation of "Reduce" from the ten analysts that are covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating and nine have issued a hold rating on the company. The average 1 year price objective among brokers that have covered the stock in the last year is $149.11.

A number of research analysts have issued reports on PAYX shares. Jefferies Financial Group set a $140.00 price target on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 price target on Paychex and gave the company a "sector perform" rating in a report on Tuesday, June 24th. JPMorgan Chase & Co. boosted their price target on Paychex from $140.00 to $148.00 and gave the company an "underweight" rating in a report on Wednesday, June 18th. Citigroup set a $158.00 price target on Paychex and gave the company a "neutral" rating in a report on Tuesday, June 24th. Finally, Morgan Stanley reduced their target price on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Friday, June 27th.

Paychex Stock Performance

NASDAQ PAYX traded down $0.76 during trading hours on Tuesday, reaching $144.91. The stock had a trading volume of 3,500,018 shares, compared to its average volume of 1,972,153. The stock has a fifty day moving average of $152.13 and a 200 day moving average of $148.15. The stock has a market cap of $52.20 billion, a P/E ratio of 31.71, a price-to-earnings-growth ratio of 3.29 and a beta of 0.88. Paychex has a 52-week low of $115.40 and a 52-week high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.39 and a current ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the previous year, the company posted $1.12 earnings per share. Sell-side analysts predict that Paychex will post 4.99 earnings per share for the current year.

Paychex Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 29th. Investors of record on Monday, May 12th were paid a $1.08 dividend. This is an increase from Paychex's previous quarterly dividend of $0.98. This represents a $4.32 annualized dividend and a yield of 2.98%. The ex-dividend date was Monday, May 12th. Paychex's dividend payout ratio is currently 94.53%.

Insider Buying and Selling

In related news, Director Joseph M. Velli sold 3,650 shares of the stock in a transaction on Tuesday, April 15th. The stock was sold at an average price of $149.25, for a total value of $544,762.50. Following the completion of the transaction, the director directly owned 78,455 shares of the company's stock, valued at approximately $11,709,408.75. This represents a 4.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 11.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. raised its stake in Paychex by 220.7% in the 4th quarter. Meeder Asset Management Inc. now owns 186 shares of the business services provider's stock valued at $26,000 after purchasing an additional 128 shares during the last quarter. WealthTrak Capital Management LLC purchased a new stake in Paychex in the 4th quarter valued at $28,000. MorganRosel Wealth Management LLC purchased a new stake in Paychex in the 1st quarter valued at $34,000. Quarry LP purchased a new stake in Paychex in the 1st quarter valued at $34,000. Finally, Alpine Bank Wealth Management purchased a new stake in Paychex in the 1st quarter valued at $34,000. 83.47% of the stock is owned by institutional investors and hedge funds.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.