Paychex (NASDAQ:PAYX) Sets New 52-Week High - Still a Buy?

Paychex, Inc. (NASDAQ:PAYX - Get Free Report)'s share price hit a new 52-week high during trading on Monday . The stock traded as high as $155.45 and last traded at $155.05, with a volume of 79234 shares trading hands. The stock had previously closed at $153.48.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Royal Bank of Canada restated a "sector perform" rating and set a $148.00 price objective on shares of Paychex in a research report on Friday, December 20th. Barclays boosted their price target on shares of Paychex from $135.00 to $140.00 and gave the company an "equal weight" rating in a research report on Monday, December 23rd. JPMorgan Chase & Co. raised their price objective on Paychex from $133.00 to $139.00 and gave the stock an "underweight" rating in a report on Tuesday, November 19th. Finally, UBS Group lifted their target price on Paychex from $152.00 to $155.00 and gave the stock a "neutral" rating in a research report on Tuesday, March 4th. Two equities research analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $133.23.

Paychex Price Performance

The company has a market cap of $52.21 billion, a price-to-earnings ratio of 30.53, a PEG ratio of 4.10 and a beta of 0.98. The company has a 50-day simple moving average of $146.84 and a 200-day simple moving average of $141.97. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.39 and a current ratio of 1.39.

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Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Thursday, December 19th. The business services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates of $1.12 by $0.02. The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.31 billion. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The firm's revenue was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.08 earnings per share. As a group, research analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were issued a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 2.70%. The ex-dividend date of this dividend was Friday, February 7th. Paychex's dividend payout ratio (DPR) is 82.53%.

Institutional Inflows and Outflows

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

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.