Paychex (NASDAQ:PAYX) Now Covered by Analysts at Guggenheim

Guggenheim assumed coverage on shares of Paychex (NASDAQ:PAYX) in a research note released on Thursday, Marketbeat.com reports. The firm issued a neutral rating on the business services provider’s stock.

PAYX has been the topic of several other research reports. Argus decreased their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a report on Friday, January 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. JPMorgan Chase & Co. cut their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research report on Monday, December 22nd. Stephens reduced their price target on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Finally, Morgan Stanley lowered their price target on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Paychex currently has an average rating of “Reduce” and an average target price of $121.38.

Paychex Trading Up 1.2%

PAYX opened at $91.71 on Thursday. The stock’s fifty day moving average is $98.91 and its two-hundred day moving average is $112.79. The company has a market capitalization of $32.92 billion, a P/E ratio of 20.80 and a beta of 0.91. Paychex has a 52 week low of $86.89 and a 52 week high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex (NASDAQ:PAYX) last issued its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. During the same period in the prior year, the business earned $1.14 EPS. The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. Analysts forecast that Paychex will post 4.99 earnings per share for the current year.

Paychex announced that its Board of Directors has approved a stock repurchase plan on Friday, January 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were given a dividend of $1.08 per share. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.7%. Paychex’s dividend payout ratio is presently 97.96%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in PAYX. Heartwood Wealth Advisors LLC acquired a new position in Paychex during the 3rd quarter valued at about $25,000. Vermillion & White Wealth Management Group LLC acquired a new stake in Paychex in the third quarter worth about $27,000. Stance Capital LLC purchased a new stake in shares of Paychex during the third quarter worth about $31,000. MMA Asset Management LLC purchased a new stake in shares of Paychex during the third quarter worth about $32,000. Finally, Westfuller Advisors LLC acquired a new position in shares of Paychex during the third quarter valued at about $35,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Company Profile

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.