Paychex (NASDAQ:PAYX) Reaches New 52-Week High - Here's Why

Paychex, Inc. (NASDAQ:PAYX - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $142.21 and last traded at $142.18, with a volume of 497944 shares traded. The stock had previously closed at $138.89.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on PAYX. Morgan Stanley raised their price target on Paychex from $122.00 to $133.00 and gave the stock an "equal weight" rating in a research note on Wednesday, October 2nd. Bank of America lifted their target price on Paychex from $111.00 to $113.00 and gave the company an "underperform" rating in a research note on Thursday, June 27th. JPMorgan Chase & Co. lifted their target price on Paychex from $120.00 to $128.00 and gave the company an "underweight" rating in a research note on Tuesday, August 20th. Robert W. Baird lowered their target price on Paychex from $126.00 to $124.00 and set a "neutral" rating on the stock in a research note on Thursday, June 27th. Finally, TD Cowen lifted their target price on Paychex from $126.00 to $131.00 and gave the company a "hold" rating in a research note on Wednesday, October 2nd. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. Based on data from MarketBeat.com, Paychex currently has an average rating of "Hold" and an average target price of $130.77.

Paychex Stock Up 2.5 %

The firm has a fifty day moving average price of $131.59 and a 200 day moving average price of $125.50. The firm has a market capitalization of $51.24 billion, a price-to-earnings ratio of 29.74, a PEG ratio of 3.73 and a beta of 1.00. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.38 and a current ratio of 1.38.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.02. The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.31 billion. Paychex had a return on equity of 45.97% and a net margin of 31.98%. Paychex's revenue was up 2.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.14 earnings per share. As a group, sell-side analysts expect that Paychex, Inc. will post 4.98 EPS for the current fiscal year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 27th. Investors of record on Thursday, November 7th will be issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 7th. This represents a $3.92 annualized dividend and a yield of 2.75%. Paychex's dividend payout ratio is presently 83.94%.

Insider Transactions at Paychex

In other news, VP Michael E. Gioja sold 26,428 shares of the business's stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $139.03, for a total value of $3,674,284.84. Following the completion of the transaction, the vice president now directly owns 14,515 shares of the company's stock, valued at $2,018,020.45. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other news, VP Michael E. Gioja sold 14,731 shares of Paychex stock in a transaction on Friday, October 4th. The stock was sold at an average price of $139.18, for a total value of $2,050,260.58. Following the completion of the sale, the vice president now owns 14,515 shares of the company's stock, valued at $2,020,197.70. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Michael E. Gioja sold 26,428 shares of Paychex stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $139.03, for a total value of $3,674,284.84. Following the completion of the sale, the vice president now directly owns 14,515 shares of the company's stock, valued at approximately $2,018,020.45. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 74,162 shares of company stock valued at $9,846,185 over the last three months. 11.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Paychex

A number of hedge funds and other institutional investors have recently made changes to their positions in PAYX. Meeder Asset Management Inc. grew its position in Paychex by 286.0% during the second quarter. Meeder Asset Management Inc. now owns 220 shares of the business services provider's stock valued at $26,000 after acquiring an additional 163 shares during the period. ORG Partners LLC grew its position in Paychex by 227.6% during the second quarter. ORG Partners LLC now owns 249 shares of the business services provider's stock valued at $29,000 after acquiring an additional 173 shares during the period. Strategic Financial Concepts LLC purchased a new stake in Paychex during the second quarter valued at about $30,000. Chilton Capital Management LLC purchased a new stake in Paychex during the first quarter valued at about $31,000. Finally, ESL Trust Services LLC purchased a new stake in Paychex during the first quarter valued at about $31,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

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.

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