Paychex (NASDAQ:PAYX) Sets New 52-Week High Following Earnings Beat

Paychex, Inc. (NASDAQ:PAYX) shares reached a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $138.30 and last traded at $133.02, with a volume of 439819 shares. The stock had previously closed at $134.19.

The business services provider reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $1.14 by $0.02. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the prior year, the company posted $1.14 earnings per share. Paychex’s quarterly revenue was up 2.5% on a year-over-year basis.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 29th. Investors of record on Thursday, August 8th were issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 2.78%. The ex-dividend date of this dividend was Thursday, August 8th. Paychex’s dividend payout ratio is presently 83.94%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Barclays boosted their target price on Paychex from $118.00 to $132.00 and gave the stock an “equal weight” rating in a research report on Monday, September 23rd. JPMorgan Chase & Co. boosted their target price on Paychex from $120.00 to $128.00 and gave the stock an “underweight” rating in a research report on Tuesday, August 20th. Stifel Nicolaus boosted their target price on Paychex from $130.00 to $141.00 and gave the stock a “hold” rating in a research report on Wednesday. Citigroup boosted their target price on Paychex from $125.00 to $145.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Finally, Morgan Stanley boosted their target price on Paychex from $122.00 to $133.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Two research analysts have rated the stock with a sell rating and twelve have assigned a hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $130.71.

Insider Activity

In related news, VP Mark Anthony Bottini sold 8,954 shares of the stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $123.60, for a total transaction of $1,106,714.40. Following the transaction, the vice president now directly owns 79,232 shares in the company, valued at $9,793,075.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other Paychex news, VP Mark Anthony Bottini sold 8,954 shares of the stock in a transaction that occurred on Wednesday, July 24th. The shares were sold at an average price of $123.60, for a total transaction of $1,106,714.40. Following the transaction, the vice president now owns 79,232 shares of the company’s stock, valued at $9,793,075.20. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director David J. S. Flaschen sold 9,615 shares of the business’s stock in a transaction on Friday, July 26th. The shares were sold at an average price of $125.60, for a total transaction of $1,207,644.00. Following the sale, the director now directly owns 5,383 shares of the company’s stock, valued at $676,104.80. The disclosure for this sale can be found here. Insiders have sold 45,673 shares of company stock worth $5,636,085 over the last three months. 11.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Paychex

Several institutional investors have recently made changes to their positions in the stock. Central Pacific Bank Trust Division grew its stake in shares of Paychex by 0.6% during the 3rd quarter. Central Pacific Bank Trust Division now owns 18,277 shares of the business services provider’s stock valued at $2,453,000 after buying an additional 103 shares during the period. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of Paychex by 30.0% during the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 143,047 shares of the business services provider’s stock valued at $16,960,000 after acquiring an additional 33,047 shares in the last quarter. Sanctuary Advisors LLC acquired a new position in shares of Paychex during the 2nd quarter valued at $10,038,000. Clear Rock Advisors LLC lifted its holdings in shares of Paychex by 5.4% during the 2nd quarter. Clear Rock Advisors LLC now owns 23,139 shares of the business services provider’s stock valued at $2,743,000 after acquiring an additional 1,195 shares in the last quarter. Finally, New Century Financial Group LLC lifted its holdings in shares of Paychex by 158.5% during the 2nd quarter. New Century Financial Group LLC now owns 5,116 shares of the business services provider’s stock valued at $607,000 after acquiring an additional 3,137 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Price Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.37 and a current ratio of 1.37. The firm has a market cap of $50.64 billion, a price-to-earnings ratio of 30.14, a price-to-earnings-growth ratio of 3.52 and a beta of 1.00. The company’s fifty day moving average is $129.88 and its two-hundred day moving average is $124.60.

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.