Paychex - PAYX Stock Forecast, Price & News

Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, 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. The company also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Credit Suisse Group decreased their target price on Paychex from $165.00 to $140.00 and set an "outperform" rating for the company in a research report on Thursday, June 30th. William Blair reissued a "market perform" rating on shares of Paychex in a research report on Wednesday, June 29th. Cowen reduced their target price on shares of Paychex from $140.00 to $135.00 and set an "outperform" rating on the stock in a research report on Thursday, June 30th. Cowen decreased their price target on shares of Paychex from $140.00 to $135.00 and set an "outperform" rating for the company in a research note on Thursday, June 30th. Finally, Morgan Stanley dropped their price objective on shares of Paychex from $140.00 to $130.00 and set an "equal weight" rating on the stock in a research note on Thursday, June 30th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $129.23.

Paychex Price Performance

Shares of PAYX opened at $130.90 on Tuesday. Paychex has a twelve month low of $106.55 and a twelve month high of $141.92. The company has a market capitalization of $47.26 billion, a P/E ratio of 34.09, a price-to-earnings-growth ratio of 4.17 and a beta of 1.00. The firm has a 50 day moving average of $120.40 and a 200 day moving average of $123.25. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.26.

Paychex (NASDAQ:PAYX - Get Rating) last issued its earnings results on Wednesday, June 29th. The business services provider reported $0.81 EPS for the quarter, beating the consensus estimate of $0.79 by $0.02. Paychex had a return on equity of 43.65% and a net margin of 30.20%. The business had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same period last year, the business posted $0.72 EPS. The company's revenue was up 9.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Paychex will post 4.14 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 25th. Investors of record on Thursday, August 11th will be given a dividend of $0.79 per share. The ex-dividend date of this dividend is Wednesday, August 10th. This represents a $3.16 dividend on an annualized basis and a yield of 2.41%. Paychex's dividend payout ratio (DPR) is 82.29%.

Insider Buying and Selling

In other Paychex news, Director Joseph M. Velli sold 4,184 shares of the business's stock in a transaction on Tuesday, July 5th. The shares were sold at an average price of $113.34, for a total transaction of $474,214.56. Following the completion of the sale, the director now directly owns 60,531 shares in the company, valued at approximately $6,860,583.54. The sale was disclosed in a document filed with the SEC, which is available through this link. In other Paychex news, VP Michael E. Gioja sold 1,227 shares of the stock in a transaction dated Wednesday, July 6th. The stock was sold at an average price of $117.81, for a total value of $144,552.87. Following the transaction, the vice president now owns 51,122 shares of the company's stock, valued at $6,022,682.82. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Joseph M. Velli sold 4,184 shares of the stock in a transaction dated Tuesday, July 5th. The shares were sold at an average price of $113.34, for a total value of $474,214.56. Following the completion of the transaction, the director now directly owns 60,531 shares in the company, valued at approximately $6,860,583.54. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 90,837 shares of company stock worth $10,539,336. 11.50% of the stock is owned by insiders.