Paychex (NASDAQ:PAYX) Hits New 12-Month Low - Should You Sell?

Key Points

• Paychex's stock has reached a new 52-week low, trading at $120.11 before closing at $121.68, down from a previous close of $128.53.
• Market analysts have issued multiple ratings changes, with a consensus rating of Reduce and an average price target of $145.91.
• The company recently announced a quarterly dividend of $1.08, representing a 3.5% dividend yield and a payout ratio of 94.53%.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday . The company traded as low as $120.11 and last traded at $121.68, with a volume of 923963 shares traded. The stock had previously closed at $128.53.

Analyst Upgrades and Downgrades

PAYX has been the subject of several research analyst reports. Stifel Nicolaus lowered their price objective on shares of Paychex from $152.00 to $142.00 and set a "hold" rating for the company in a research report on Monday, September 22nd. Wolfe Research reduced their price target on shares of Paychex from $145.00 to $140.00 and set an "underperform" rating for the company in a research report on Friday. BMO Capital Markets cut their price objective on shares of Paychex from $160.00 to $143.00 and set a "market perform" rating for the company in a research report on Wednesday, September 24th. JPMorgan Chase & Co. lifted their price target on shares of Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a research note on Thursday, August 14th. Finally, UBS Group decreased their target price on Paychex from $148.00 to $140.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Ten analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $145.91.

Paychex Stock Down 4.0%

The company has a market cap of $44.38 billion, a PE ratio of 26.92, a price-to-earnings-growth ratio of 2.94 and a beta of 0.91. The business has a fifty day simple moving average of $137.37 and a two-hundred day simple moving average of $144.99. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 3.5%. The ex-dividend date was Monday, July 21st. Paychex's dividend payout ratio (DPR) is 94.53%.

Insider Activity

In related news, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the sale, the chairman directly owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John B. Gibson sold 12,370 shares of the stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the transaction, the chief executive officer directly owned 81,755 shares in the company, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Paychex

Several large investors have recently made changes to their positions in the business. NewSquare Capital LLC boosted its holdings in shares of Paychex by 83.8% during the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider's stock worth $31,000 after purchasing an additional 98 shares during the period. Alpine Bank Wealth Management bought a new position in Paychex during the first quarter valued at about $34,000. MorganRosel Wealth Management LLC bought a new position in Paychex in the first quarter worth $34,000. Quarry LP bought a new stake in shares of Paychex in the 1st quarter valued at approximately $34,000. Finally, Tsfg LLC lifted its holdings in Paychex by 122.3% during the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after purchasing an additional 126 shares during the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.