Key Points
- Paychex director Joseph Tucci sold 3,907 shares on June 26 at an average price of $98.25, totaling about $383,862.75. After the sale, he still held 67,364 shares worth roughly $6.62 million.
- Paychex recently beat earnings expectations, reporting quarterly EPS of $1.32 versus the $1.31 consensus and revenue of $1.61 billion versus $1.60 billion expected. Revenue rose 12.5% year over year, and the company issued FY 2027 EPS guidance of $5.90 to $6.01.
- The company boosted its dividend to $1.19 per quarter from $1.08 previously, implying an annualized payout of $4.76 and a yield of about 4.8%. However, the payout ratio is high at 97.34%.
Paychex, Inc. (NASDAQ:PAYX - Get Free Report) Director Joseph Tucci sold 3,907 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares of the company's stock, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link.
Paychex Price Performance
Shares of PAYX opened at $98.33 on Wednesday. The business has a 50-day moving average of $95.90 and a 200-day moving average of $98.86. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The company has a market capitalization of $35.23 billion, a price-to-earnings ratio of 20.11 and a beta of 0.84. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $148.76.
Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm's revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities research analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year.
Paychex Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were paid a $1.19 dividend. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.8%. This is an increase from Paychex's previous quarterly dividend of $1.08. Paychex's payout ratio is currently 97.34%.
Institutional Inflows and Outflows
A number of institutional investors have recently modified their holdings of the stock. Vermillion & White Wealth Management Group LLC acquired a new position in shares of Paychex during the third quarter valued at about $27,000. Cornerstone Planning Group LLC grew its stake in shares of Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after buying an additional 268 shares during the period. Stance Capital LLC acquired a new stake in shares of Paychex in the 3rd quarter valued at about $31,000. Hilton Head Capital Partners LLC bought a new position in Paychex in the fourth quarter worth approximately $31,000. Finally, Kingdom Financial Group LLC. bought a new position in Paychex in the fourth quarter worth approximately $33,000. Institutional investors and hedge funds own 83.47% of the company's stock.
Analysts Set New Price Targets
A number of equities analysts recently weighed in on PAYX shares. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. Wells Fargo & Company cut their price target on shares of Paychex from $116.00 to $95.00 and set an "underweight" rating on the stock in a research report on Thursday, March 26th. JPMorgan Chase & Co. increased their price target on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a report on Thursday, June 25th. BMO Capital Markets lifted their price objective on Paychex to $52.00 and gave the stock an "outperform" rating in a research report on Thursday, March 26th. Finally, Argus raised Paychex to a "strong-buy" rating in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $105.80.
Read Our Latest Stock Analysis on PAYX
Paychex Company Profile
(
Get Free Report)
Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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