Royal Bank of Canada Reaffirms “Sector Perform” Rating for Paychex (NASDAQ:PAYX)

Royal Bank of Canada reaffirmed their sector perform rating on shares of Paychex (NASDAQ:PAYXFree Report) in a research report sent to investors on Wednesday morning, Benzinga reports. Royal Bank of Canada currently has a $130.00 price objective on the business services provider’s stock.

Several other equities analysts have also issued reports on the stock. Stifel Nicolaus lifted their price objective on shares of Paychex from $124.00 to $130.00 and gave the company a hold rating in a report on Friday, December 22nd. Wedbush reissued a neutral rating and set a $115.00 price objective on shares of Paychex in a report on Wednesday. Citigroup cut their price objective on shares of Paychex from $130.00 to $125.00 and set a neutral rating on the stock in a report on Tuesday, December 26th. TD Cowen reissued a market perform rating and set a $123.00 price objective (down from $132.00) on shares of Paychex in a report on Friday, December 22nd. Finally, Evercore ISI reissued an in-line rating and set a $118.00 price objective on shares of Paychex in a report on Tuesday, March 26th. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of Hold and a consensus price target of $123.00.

Check Out Our Latest Report on Paychex

Paychex Stock Performance

Shares of NASDAQ:PAYX opened at $120.26 on Wednesday. The firm has a market cap of $43.27 billion, a PE ratio of 26.87, a price-to-earnings-growth ratio of 3.29 and a beta of 0.93. The firm’s 50 day simple moving average is $121.98 and its 200-day simple moving average is $119.61. Paychex has a one year low of $104.09 and a one year high of $129.70. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.23 and a current ratio of 1.23.

Paychex (NASDAQ:PAYXGet Free Report) last issued its earnings results on Tuesday, April 2nd. The business services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.37 by $0.01. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.46 billion. Paychex had a net margin of 31.62% and a return on equity of 46.37%. The company’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same period last year, the company posted $1.29 earnings per share. As a group, equities analysts predict that Paychex will post 4.72 EPS for the current year.

Paychex announced that its board has approved a stock buyback program on Friday, January 19th that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the business services provider to purchase up to 0.9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 27th. Stockholders of record on Tuesday, February 13th were paid a dividend of $0.89 per share. The ex-dividend date was Monday, February 12th. This represents a $3.56 annualized dividend and a dividend yield of 2.96%. Paychex’s payout ratio is currently 79.11%.

Insider Transactions at Paychex

In other news, VP Mark Anthony Bottini sold 15,481 shares of Paychex stock in a transaction on Monday, January 29th. The shares were sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the completion of the sale, the vice president now directly owns 82,690 shares in the company, valued at $9,966,625.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 11.50% of the company’s stock.

Institutional Investors Weigh In On Paychex

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Paychex by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 30,418,038 shares of the business services provider’s stock worth $3,623,093,000 after buying an additional 487,031 shares during the period. Capital International Investors lifted its position in Paychex by 9.0% during the fourth quarter. Capital International Investors now owns 18,504,389 shares of the business services provider’s stock valued at $2,204,115,000 after purchasing an additional 1,523,520 shares during the period. Bank of New York Mellon Corp lifted its position in Paychex by 8.9% during the third quarter. Bank of New York Mellon Corp now owns 11,331,387 shares of the business services provider’s stock valued at $1,306,849,000 after purchasing an additional 927,584 shares during the period. Geode Capital Management LLC lifted its position in Paychex by 0.8% during the first quarter. Geode Capital Management LLC now owns 7,982,029 shares of the business services provider’s stock valued at $913,599,000 after purchasing an additional 62,739 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in Paychex by 2.7% during the third quarter. Charles Schwab Investment Management Inc. now owns 6,797,671 shares of the business services provider’s stock valued at $783,975,000 after purchasing an additional 178,316 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

(Get Free Report)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, 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.

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Analyst Recommendations for Paychex (NASDAQ:PAYX)

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