Paychex (NASDAQ:PAYX) Stock Price Breaks Above Fifty Day Moving Average - What's Next?

Key Points

• Paychex shares rose above their 50-day moving average, reaching $115.99 and last trading at $115.49, about 3% higher. The 50-day average is $112.62, while the 200-day average is $103.62.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $127.88. Recent firms including Bank of America, Baird, Stifel and Jefferies lowered their price targets.
• Paychex reported quarterly EPS of $1.34, beating estimates by $0.02, while revenue reached $1.63 billion and grew 5.9% year over year. The company also declared a quarterly dividend of $1.19, implying a 4.1% annualized yield.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report)'s share price passed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $112.62 and traded as high as $115.99. Paychex shares last traded at $115.49, with a volume of 2,468,591 shares changing hands.

Wall Street Analyst Weigh In

PAYX has been the subject of several analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Paychex in a research report on Friday, October 16th. Bank of America decreased their target price on Paychex from $450.00 to $225.00 in a research note on Wednesday, July 15th. Robert W. Baird decreased their price objective on Paychex from $125.00 to $110.00 and set a "neutral" rating for the company in a report on Monday, September 28th. Stifel Nicolaus decreased their target price on shares of Paychex from $130.00 to $112.00 and set a "hold" rating for the company in a research note on Thursday, September 24th. Finally, Jefferies Financial Group cut their target price on shares of Paychex from $120.00 to $110.00 and set a "hold" rating for the company in a research note on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Paychex currently has a consensus rating of "Hold" and an average price target of $127.88.

Paychex Trading Up 3.0%

The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.23. The stock has a market capitalization of $41.11 billion, a P/E ratio of 22.91, a P/E/G ratio of 2.27 and a beta of 0.86. The business has a 50-day moving average price of $112.62 and a two-hundred day moving average price of $103.62.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.22 EPS. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, October 26th will be issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date is Monday, October 26th. Paychex's dividend payout ratio is presently 94.44%.

Insider Buying and Selling at Paychex

In other news, Director Joseph Velli sold 7,839 shares of the firm's stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $107.68, for a total transaction of $844,103.52. Following the completion of the transaction, the director directly owned 81,725 shares in the company, valued at $8,800,148. This trade represents a 8.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Paychex

Several large investors have recently modified their holdings of the company. Parkside Financial Bank & Trust grew its holdings in Paychex by 6.3% during the second quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider's stock worth $149,000 after buying an additional 90 shares in the last quarter. Seelaus Asset Management LLC increased its position in Paychex by 2.0% in the first quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider's stock worth $503,000 after buying an additional 107 shares during the last quarter. United Community Bank raised its stake in Paychex by 3.1% in the 2nd quarter. United Community Bank now owns 3,635 shares of the business services provider's stock valued at $357,000 after acquiring an additional 110 shares during the period. Bryn Mawr Trust Advisors LLC boosted its holdings in Paychex by 4.3% in the 1st quarter. Bryn Mawr Trust Advisors LLC now owns 2,678 shares of the business services provider's stock worth $247,000 after buying an additional 111 shares during the period. Finally, Elevation Wealth Partners LLC grew its position in shares of Paychex by 45.5% in the second quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider's stock valued at $39,000 after purchasing an additional 125 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.

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