Paychex, Inc. to Issue Quarterly Dividend of $0.50 (PAYX)
Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Wednesday, October 11th, RTT News reports. Investors of record on Wednesday, November 1st will be paid a dividend of 0.50 per share by the business services provider on Wednesday, November 15th. This represents a $2.00 dividend on an annualized basis and a yield of 3.14%.
Paychex has raised its dividend payment by an average of 36.0% annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Paychex has a payout ratio of 84.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Paychex to earn $2.56 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 78.1%.
Shares of Paychex (NASDAQ:PAYX) traded down 0.49% on Wednesday, reaching $63.40. 744,396 shares of the company were exchanged. The company’s 50 day moving average is $58.74 and its 200 day moving average is $58.22. The firm has a market capitalization of $22.76 billion, a PE ratio of 27.81 and a beta of 0.98. Paychex has a 12-month low of $52.78 and a 12-month high of $64.08.
Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Tuesday, October 3rd. The business services provider reported $0.62 EPS for the quarter, topping the consensus estimate of $0.60 by $0.02. The business had revenue of $816.80 million for the quarter, compared to analyst estimates of $816.34 million. Paychex had a net margin of 26.01% and a return on equity of 43.01%. The company’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.60 earnings per share. Analysts forecast that Paychex will post $2.38 earnings per share for the current year.
In other news, CEO Martin Mucci sold 29,786 shares of the business’s stock in a transaction that occurred on Thursday, October 5th. The shares were sold at an average price of $63.17, for a total value of $1,881,581.62. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Jennifer R. Vossler sold 11,155 shares of the business’s stock in a transaction that occurred on Friday, October 6th. The stock was sold at an average price of $63.07, for a total transaction of $703,545.85. The disclosure for this sale can be found here. In the last three months, insiders sold 100,941 shares of company stock valued at $6,126,327. Corporate insiders own 11.70% of the company’s stock.
Several brokerages have commented on PAYX. BMO Capital Markets reaffirmed a “hold” rating and issued a $60.00 price objective on shares of Paychex in a research report on Thursday, June 29th. BidaskClub raised shares of Paychex from a “strong sell” rating to a “sell” rating in a research report on Monday, July 31st. Wells Fargo & Company lifted their price objective on shares of Paychex from $58.00 to $60.00 and gave the stock a “market perform” rating in a research report on Wednesday, October 4th. Bank of America Corporation lifted their price objective on shares of Paychex from $64.00 to $68.00 and gave the stock a “buy” rating in a research report on Wednesday, October 4th. Finally, Royal Bank Of Canada reaffirmed an “underperform” rating and issued a $57.00 price objective (up previously from $54.00) on shares of Paychex in a research report on Wednesday, October 4th. Five analysts have rated the stock with a sell rating, twelve have issued a hold rating and two have given a buy rating to the company’s stock. Paychex currently has a consensus rating of “Hold” and an average price target of $60.07.
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Paychex, Inc is a provider of integrated human capital management (HCM) solutions for payroll, human resource (HR), retirement and insurance services for small- to medium-sized businesses in the United States. The Company also has operations in Germany. The Company offers services, including Payroll processing, Human Resource Services, and Accounting and Financial Services.
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