Paychex, Inc. (PAYX) To Go Ex-Dividend on July 28th

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, July 16th. Shareholders of record on Tuesday, July 28th will be given a dividend of 1.19 per share by the business services provider on Friday, August 28th. This represents a c) annualized dividend and a yield of 4.2%. The ex-dividend date is Tuesday, July 28th.

Paychex has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 3 consecutive years. Paychex has a dividend payout ratio of 84.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research analysts expect Paychex to earn $6.34 per share next year, which means the company should continue to be able to cover its $4.76 annual dividend with an expected future payout ratio of 75.1%.

Paychex Price Performance

NASDAQ PAYX opened at $114.39 on Friday. Paychex has a fifty-two week low of $85.45 and a fifty-two week high of $148.11. The stock’s 50-day moving average is $100.05 and its two-hundred day moving average is $98.39. The firm has a market cap of $40.98 billion, a P/E ratio of 23.39 and a beta of 0.84. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.01. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts anticipate that Paychex will post 5.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the sale, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PAYX. Cornerstone Planning Group LLC increased its position in Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock worth $30,000 after acquiring an additional 268 shares during the period. Hilton Head Capital Partners LLC bought a new stake in Paychex in the 4th quarter valued at $31,000. Kingdom Financial Group LLC. bought a new stake in Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG grew its position in Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock worth $33,000 after purchasing an additional 347 shares during the last quarter. Finally, Board of the Pension Protection Fund acquired a new stake in Paychex in the 4th quarter worth $34,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

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.