Paychex (NASDAQ:PAYX) Shares Gap Down to $121.62

Shares of Paychex, Inc. (NASDAQ:PAYXGet Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $121.62, but opened at $116.57. Paychex shares last traded at $118.41, with a volume of 613,929 shares changing hands.

Analyst Ratings Changes

A number of brokerages have recently weighed in on PAYX. TD Cowen dropped their price target on Paychex from $122.00 to $121.00 and set a “hold” rating for the company in a research report on Wednesday. Wedbush reiterated a “neutral” rating and set a $115.00 price objective on shares of Paychex in a research report on Wednesday. Stifel Nicolaus lifted their price objective on Paychex from $124.00 to $130.00 and gave the stock a “hold” rating in a research report on Friday, December 22nd. Citigroup dropped their price objective on Paychex from $130.00 to $125.00 and set a “neutral” rating for the company in a research report on Tuesday, December 26th. Finally, Royal Bank of Canada reiterated a “sector perform” rating and set a $130.00 price objective on shares of Paychex in a research report on Wednesday. Two equities research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $123.00.

Check Out Our Latest Research Report on PAYX

Paychex Stock Down 1.5 %

The firm has a market capitalization of $43.27 billion, a price-to-earnings ratio of 26.20, a price-to-earnings-growth ratio of 3.30 and a beta of 0.93. The company has a current ratio of 1.24, a quick ratio of 1.23 and a debt-to-equity ratio of 0.21. The firm has a 50 day moving average price of $121.98 and a two-hundred day moving average price of $119.61.

Paychex (NASDAQ:PAYXGet Free Report) last released its quarterly earnings data on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.01. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.46 billion. Paychex had a return on equity of 46.14% and a net margin of 31.86%. The company’s revenue was up 4.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.29 EPS. On average, equities analysts expect that Paychex, Inc. will post 4.72 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, February 27th. Shareholders of record on Tuesday, February 13th were issued a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 2.96%. The ex-dividend date was Monday, February 12th. Paychex’s dividend payout ratio is presently 77.56%.

Paychex declared that its board has authorized a share buyback program on Friday, January 19th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the business services provider to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, VP Mark Anthony Bottini sold 15,481 shares of the stock in a transaction that occurred on Monday, January 29th. The stock was sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the completion of the transaction, the vice president now directly owns 82,690 shares in the company, valued at approximately $9,966,625.70. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 11.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Paychex

Several institutional investors and hedge funds have recently made changes to their positions in the company. Fairfield Bush & CO. acquired a new stake in Paychex in the first quarter worth $269,000. Vontobel Holding Ltd. increased its position in Paychex by 35.7% in the first quarter. Vontobel Holding Ltd. now owns 5,455 shares of the business services provider’s stock worth $747,000 after buying an additional 1,436 shares during the period. Sei Investments Co. increased its position in Paychex by 118.3% in the first quarter. Sei Investments Co. now owns 91,985 shares of the business services provider’s stock worth $12,554,000 after buying an additional 49,851 shares during the period. Prudential PLC acquired a new stake in Paychex in the first quarter worth $1,019,000. Finally, Brighton Jones LLC acquired a new stake in Paychex in the first quarter worth $237,000. 83.47% of the stock is owned by institutional investors and hedge funds.

About Paychex

(Get Free Report)

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.

Further Reading

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