Paychex Receives “Neutral” Rating from Bank of America (PAYX)
Paychex (NASDAQ:PAYX)‘s stock had its “neutral” rating reaffirmed by equities research analysts at Bank of America in a research note issued to investors on Thursday. They currently have a $44.00 price target on the stock, down from their previous price target of $47.00. Bank of America’s price objective would indicate a potential upside of 6.93% from the stock’s previous close.
The analysts wrote, “Management’s upbeat tone contrasted to PAYX shares’ -2% reaction to 4Q earnings and FY15 guidance. A number of trends are encouraging: net sales growth accelerated, payroll clients grew 2% (up from 0.5% in FY13 and FY12), and HR Services revenue grew 10% on a comparable basis in FY14. However, checks per payroll only grew 1.1% in 4Q and could slow next year, in part driven by mix. Paychex’s FY15 guidance for 6-8% net income growth suggests minimal acceleration from 7% on an adjusted basis in FY14, though it could prove conservative.”
Shares of Paychex (NASDAQ:PAYX) opened at 41.15 on Thursday. Paychex has a 52-week low of $36.80 and a 52-week high of $45.95. The stock has a 50-day moving average of $41.10 and a 200-day moving average of $42.00. The company has a market cap of $14.968 billion and a P/E ratio of 25.53. Paychex also was the target of a large growth in short interest in June. As of June 13th, there was short interest totalling 17,181,235 shares, a growth of 11.8% from the May 30th total of 15,363,470 shares. Currently, 5.3% of the shares of the stock are short sold. Based on an average daily volume of 1,579,637 shares, the days-to-cover ratio is currently 10.9 days.
Paychex (NASDAQ:PAYX) last announced its earnings results on Tuesday, July 1st. The company reported $0.40 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.40. The company had revenue of $639.00 million for the quarter, compared to the consensus estimate of $617.35 million. During the same quarter in the previous year, the company posted $0.38 earnings per share. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts predict that Paychex will post $1.71 earnings per share for the current fiscal year.
Paychex, Inc is a provider of payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses.
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