Paychex, Inc. (NASDAQ:PAYX) Short Interest Down 14.3% in December

Paychex, Inc. (NASDAQ:PAYX) was the recipient of a large decline in short interest in December. As of December 15th, there was short interest totalling 14,850,000 shares, a decline of 14.3% from the November 30th total of 17,330,000 shares. Approximately 4.6% of the company’s shares are sold short. Based on an average daily volume of 1,830,000 shares, the short-interest ratio is presently 8.1 days.

Paychex Stock Performance

PAYX opened at $141.27 on Friday. Paychex has a 12-month low of $114.72 and a 12-month high of $150.71. The firm has a market capitalization of $50.87 billion, a P/E ratio of 30.12, a price-to-earnings-growth ratio of 3.88 and a beta of 0.99. The stock’s 50 day moving average price is $142.63 and its two-hundred day moving average price is $133.36. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.21.

Paychex (NASDAQ:PAYX) last announced its earnings results on Thursday, December 19th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.12 by $0.02. Paychex had a net margin of 31.98% and a return on equity of 45.97%. The business had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the previous year, the firm posted $1.08 earnings per share. Paychex’s revenue was up 4.7% compared to the same quarter last year. On average, equities analysts forecast that Paychex will post 4.98 earnings per share for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 7th were given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 2.77%. The ex-dividend date of this dividend was Thursday, November 7th. Paychex’s dividend payout ratio (DPR) is presently 82.53%.

Analysts Set New Price Targets

A number of research firms recently issued reports on PAYX. Morgan Stanley lifted their price objective on Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 2nd. JPMorgan Chase & Co. boosted their price target on Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a research note on Tuesday, November 19th. Barclays raised their price objective on shares of Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research report on Monday, December 23rd. Jefferies Financial Group boosted their target price on shares of Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a research report on Wednesday, October 2nd. Finally, TD Cowen raised their price target on shares of Paychex from $126.00 to $131.00 and gave the company a “hold” rating in a report on Wednesday, October 2nd. Two investment analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $132.23.

Insiders Place Their Bets

In other Paychex news, CFO Robert L. Schrader sold 13,015 shares of the company’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the transaction, the chief financial officer now owns 17,362 shares in the company, valued at approximately $2,471,480.70. This represents a 42.84 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Michael E. Gioja sold 26,428 shares of Paychex stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $139.03, for a total transaction of $3,674,284.84. Following the sale, the vice president now directly owns 14,515 shares of the company’s stock, valued at $2,018,020.45. This trade represents a 64.55 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 54,174 shares of company stock worth $7,577,231. Corporate insiders own 11.40% of the company’s stock.

Hedge Funds Weigh In On Paychex

Several institutional investors and hedge funds have recently added to or reduced their stakes in PAYX. CVA Family Office LLC increased its position in shares of Paychex by 5.6% during the third quarter. CVA Family Office LLC now owns 1,388 shares of the business services provider’s stock valued at $186,000 after purchasing an additional 74 shares during the period. Fortitude Family Office LLC boosted its stake in Paychex by 42.0% during the third quarter. Fortitude Family Office LLC now owns 250 shares of the business services provider’s stock worth $34,000 after buying an additional 74 shares in the last quarter. Kanawha Capital Management LLC increased its holdings in Paychex by 1.8% in the 3rd quarter. Kanawha Capital Management LLC now owns 4,283 shares of the business services provider’s stock valued at $575,000 after buying an additional 75 shares during the period. Baron Wealth Management LLC raised its stake in shares of Paychex by 2.2% in the 3rd quarter. Baron Wealth Management LLC now owns 3,628 shares of the business services provider’s stock valued at $487,000 after buying an additional 79 shares in the last quarter. Finally, Daymark Wealth Partners LLC lifted its holdings in shares of Paychex by 0.8% during the 2nd quarter. Daymark Wealth Partners LLC now owns 9,847 shares of the business services provider’s stock worth $1,167,000 after acquiring an additional 82 shares during the period. 83.47% of the stock is currently owned by institutional investors.

About Paychex

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.