Morgan Stanley Forecasts Strong Price Appreciation for Paychex (NASDAQ:PAYX) Stock

Paychex (NASDAQ:PAYX) had its price target lifted by Morgan Stanley from $137.00 to $142.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has an equal weight rating on the business services provider’s stock.

Other research analysts have also recently issued reports about the stock. Citigroup boosted their price target on shares of Paychex from $145.00 to $158.00 and gave the stock a “neutral” rating in a report on Thursday. Barclays increased their price target on Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research report on Monday, December 23rd. Stifel Nicolaus boosted their price objective on Paychex from $141.00 to $156.00 and gave the stock a “hold” rating in a research report on Thursday. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $148.00 target price on shares of Paychex in a research report on Friday, December 20th. Finally, UBS Group boosted their price target on shares of Paychex from $152.00 to $155.00 and gave the stock a “neutral” rating in a report on Tuesday, March 4th. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. Based on data from MarketBeat.com, Paychex currently has an average rating of “Hold” and a consensus target price of $137.58.

Paychex Price Performance

PAYX stock opened at $151.83 on Thursday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.39 and a current ratio of 1.39. The business has a 50-day simple moving average of $148.13 and a two-hundred day simple moving average of $143.10. The company has a market capitalization of $54.67 billion, a P/E ratio of 31.96, a price-to-earnings-growth ratio of 4.10 and a beta of 0.98. Paychex has a 52-week low of $114.72 and a 52-week high of $158.37.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, March 26th. The business services provider reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.01. The company had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.51 billion. Paychex had a return on equity of 45.28% and a net margin of 32.02%. Paychex’s quarterly revenue was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.38 earnings per share. Research analysts expect that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Stockholders of record on Friday, February 7th were paid a $0.98 dividend. The ex-dividend date was Friday, February 7th. This represents a $3.92 annualized dividend and a dividend yield of 2.58%. Paychex’s payout ratio is 81.67%.

Institutional Trading of Paychex

A number of institutional investors have recently modified their holdings of the business. Monument Capital Management grew its stake in Paychex by 4.4% in the 4th quarter. Monument Capital Management now owns 1,714 shares of the business services provider’s stock valued at $240,000 after buying an additional 72 shares in the last quarter. Mutual Advisors LLC boosted its holdings in shares of Paychex by 2.6% in the fourth quarter. Mutual Advisors LLC now owns 2,881 shares of the business services provider’s stock worth $423,000 after acquiring an additional 73 shares during the period. Emerald Advisors LLC grew its position in shares of Paychex by 2.5% in the fourth quarter. Emerald Advisors LLC now owns 3,017 shares of the business services provider’s stock valued at $423,000 after purchasing an additional 74 shares in the last quarter. Weaver Capital Management LLC raised its stake in shares of Paychex by 3.7% during the 4th quarter. Weaver Capital Management LLC now owns 2,121 shares of the business services provider’s stock valued at $297,000 after purchasing an additional 75 shares during the period. Finally, Adero Partners LLC lifted its holdings in Paychex by 3.2% during the 4th quarter. Adero Partners LLC now owns 2,391 shares of the business services provider’s stock worth $335,000 after purchasing an additional 75 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

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.