Paychex (PAYX) Raised to Strong-Buy at BidaskClub

BidaskClub upgraded shares of Paychex (NASDAQ:PAYX) from a buy rating to a strong-buy rating in a research report released on Friday.

Other analysts also recently issued reports about the company. ValuEngine upgraded Paychex from a hold rating to a buy rating in a research note on Monday, July 2nd. Morgan Stanley raised their target price on Paychex from $66.00 to $67.00 and gave the company an equal weight rating in a research note on Thursday, June 28th. Stifel Nicolaus raised their target price on Paychex from $66.00 to $69.00 and gave the company a hold rating in a research note on Thursday, June 28th. Wells Fargo & Co raised their target price on Paychex from $64.00 to $67.00 and gave the company a market perform rating in a research note on Thursday, June 28th. Finally, Wolfe Research initiated coverage on Paychex in a research note on Tuesday, July 17th. They set a market perform rating for the company. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $67.82.

Shares of Paychex stock opened at $71.16 on Friday. The stock has a market cap of $25.50 billion, a PE ratio of 27.91, a price-to-earnings-growth ratio of 3.05 and a beta of 0.94. Paychex has a 1-year low of $54.43 and a 1-year high of $73.10.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, June 27th. The business services provider reported $0.61 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.01). The business had revenue of $871.10 million for the quarter, compared to analyst estimates of $868.60 million. Paychex had a net margin of 27.62% and a return on equity of 44.29%. The firm’s revenue was up 9.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.54 earnings per share. sell-side analysts predict that Paychex will post 2.84 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 23rd. Investors of record on Wednesday, August 1st will be paid a $0.56 dividend. The ex-dividend date of this dividend is Tuesday, July 31st. This represents a $2.24 dividend on an annualized basis and a yield of 3.15%. Paychex’s dividend payout ratio (DPR) is 87.84%.

In related news, VP Laurie L. Zaucha sold 13,320 shares of Paychex stock in a transaction dated Wednesday, July 25th. The stock was sold at an average price of $72.00, for a total value of $959,040.00. Following the completion of the transaction, the vice president now directly owns 40,022 shares in the company, valued at $2,881,584. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Mark Anthony Bottini sold 30,000 shares of Paychex stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $71.03, for a total value of $2,130,900.00. The disclosure for this sale can be found here. Insiders sold 200,388 shares of company stock valued at $14,044,274 over the last quarter. Insiders own 11.70% of the company’s stock.

A number of large investors have recently bought and sold shares of the stock. Independence Bank of Kentucky grew its stake in Paychex by 12.9% in the second quarter. Independence Bank of Kentucky now owns 6,270 shares of the business services provider’s stock worth $429,000 after purchasing an additional 715 shares in the last quarter. Univest Corp of Pennsylvania grew its stake in Paychex by 13.1% in the second quarter. Univest Corp of Pennsylvania now owns 6,242 shares of the business services provider’s stock worth $427,000 after purchasing an additional 725 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in Paychex by 1.2% in the second quarter. Envestnet Asset Management Inc. now owns 61,741 shares of the business services provider’s stock valued at $4,220,000 after acquiring an additional 744 shares during the period. Redmond Asset Management LLC boosted its stake in Paychex by 9.0% in the second quarter. Redmond Asset Management LLC now owns 9,056 shares of the business services provider’s stock valued at $619,000 after acquiring an additional 750 shares during the period. Finally, Chemical Bank boosted its stake in Paychex by 9.4% in the second quarter. Chemical Bank now owns 9,008 shares of the business services provider’s stock valued at $616,000 after acquiring an additional 775 shares during the period. Institutional investors and hedge funds own 68.63% of the company’s stock.

Paychex Company Profile

Paychex, Inc provides payroll, human resource (HR), retirement, and insurance services for small to medium-sized businesses in the United States and Germany. The company offers payroll processing services that include 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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