Paychex (NASDAQ:PAYX) Sets New 1-Year High – Here’s Why

Paychex, Inc. (NASDAQ:PAYX)’s stock price hit a new 52-week high on Monday . The company traded as high as $153.99 and last traded at $154.29, with a volume of 207258 shares trading hands. The stock had previously closed at $151.67.

Analyst Upgrades and Downgrades

PAYX has been the topic of several analyst reports. Barclays increased their target price on shares of Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a report on Monday, December 23rd. JPMorgan Chase & Co. lifted their price target on shares of Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a research note on Tuesday, November 19th. Royal Bank of Canada reissued a “sector perform” rating and set a $148.00 price objective on shares of Paychex in a research report on Friday, December 20th. Finally, UBS Group boosted their price objective on shares of Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday. Two analysts have rated the stock with a sell rating and eleven have issued a hold rating to the stock. According to data from MarketBeat.com, Paychex presently has an average rating of “Hold” and a consensus target price of $133.23.

Paychex Stock Up 0.1 %

The firm has a fifty day moving average of $145.72 and a 200-day moving average of $141.09. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 0.20. The firm has a market cap of $54.77 billion, a P/E ratio of 32.02, a price-to-earnings-growth ratio of 4.10 and a beta of 1.00.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data 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 return on equity of 45.28% and a net margin of 32.02%. The company had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same quarter in the prior year, the business posted $1.08 EPS. The business’s revenue was up 4.7% compared to the same quarter last year. On average, equities research analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Stockholders of record on Friday, February 7th were given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 2.58%. The ex-dividend date was Friday, February 7th. Paychex’s dividend payout ratio (DPR) is presently 82.53%.

Institutional Investors Weigh In On Paychex

Institutional investors and hedge funds have recently modified their holdings of the company. Meeder Asset Management Inc. increased its position in Paychex by 220.7% during the fourth quarter. Meeder Asset Management Inc. now owns 186 shares of the business services provider’s stock worth $26,000 after buying an additional 128 shares during the last quarter. Union Bancaire Privee UBP SA acquired a new position in shares of Paychex during the 4th quarter worth approximately $28,000. WealthTrak Capital Management LLC bought a new stake in Paychex in the 4th quarter valued at $28,000. Millstone Evans Group LLC acquired a new stake in Paychex during the 4th quarter valued at $33,000. Finally, Avion Wealth lifted its holdings in Paychex by 469.8% during the 4th quarter. Avion Wealth now owns 245 shares of the business services provider’s stock valued at $34,000 after purchasing an additional 202 shares during the last quarter. 83.47% of the stock is 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.