Paychex (NASDAQ:PAYX) Research Coverage Started at Guggenheim

Guggenheim assumed coverage on shares of Paychex (NASDAQ:PAYX) in a research report sent to investors on Thursday morning, Marketbeat.com reports. The brokerage issued a neutral rating on the business services provider’s stock.

A number of other equities analysts have also issued reports on the stock. Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Citigroup reduced their price target on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a research report on Monday, December 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. BMO Capital Markets lowered their price objective on shares of Paychex from $121.00 to $103.00 and set a “market perform” rating on the stock in a research report on Friday, March 13th. Finally, Morgan Stanley dropped their price objective on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. One investment 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, the stock presently has an average rating of “Reduce” and an average target price of $121.38.

Paychex Stock Up 0.9%

Shares of NASDAQ PAYX opened at $92.55 on Thursday. The business has a 50-day moving average price of $98.48 and a 200 day moving average price of $112.30. The stock has a market cap of $33.22 billion, a PE ratio of 20.99 and a beta of 0.91. 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 has a 52-week low of $86.89 and a 52-week high of $161.24.

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

Paychex announced that its board has approved a stock buyback program on Friday, January 16th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Paychex Announces Dividend

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

Hedge Funds Weigh In On Paychex

Hedge funds and other institutional investors have recently bought and sold shares of the company. Brighton Jones LLC increased its stake in shares of Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares during the period. Bison Wealth LLC lifted its position in Paychex by 3.0% in the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after purchasing an additional 117 shares during the period. Woodline Partners LP acquired a new stake in Paychex in the first quarter valued at about $3,333,000. Foundations Investment Advisors LLC boosted its holdings in Paychex by 67.0% in the 2nd quarter. Foundations Investment Advisors LLC now owns 2,909 shares of the business services provider’s stock valued at $423,000 after purchasing an additional 1,167 shares in the last quarter. Finally, Intech Investment Management LLC boosted its holdings in Paychex by 53.0% in the 2nd quarter. Intech Investment Management LLC now owns 13,951 shares of the business services provider’s stock valued at $2,029,000 after purchasing an additional 4,833 shares in the last quarter. 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.