Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Friday, January 19th, RTT News reports. Shareholders of record on Thursday, February 1st will be paid a dividend of 0.50 per share by the business services provider on Thursday, February 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.90%.
Paychex has raised its dividend payment by an average of 9.6% annually over the last three years and has raised its dividend annually for the last 7 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 decline. Research analysts expect Paychex to earn $2.74 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 73.0%.
Shares of Paychex (PAYX) traded down $0.73 during midday trading on Friday, hitting $68.91. 1,662,800 shares of the company’s stock were exchanged, compared to its average volume of 2,235,725. The company has a market capitalization of $24,900.00, a P/E ratio of 29.58, a price-to-earnings-growth ratio of 3.75 and a beta of 0.99. Paychex has a fifty-two week low of $54.20 and a fifty-two week high of $70.39.
Several brokerages recently weighed in on PAYX. Wells Fargo & Co raised their price target on shares of Paychex from $58.00 to $60.00 and gave the company a “market perform” rating in a research report on Wednesday, October 4th. Royal Bank of Canada reissued a “sell” rating and set a $57.00 price target on shares of Paychex in a research report on Wednesday, November 15th. Bank of America downgraded shares of Paychex from a “buy” rating to a “neutral” rating and set a $73.00 price target for the company. in a research report on Tuesday, January 9th. Citigroup reissued a “sell” rating and set a $53.00 price target on shares of Paychex in a research report on Monday, October 2nd. Finally, Morgan Stanley reissued an “equal weight” rating and set a $59.00 price target (up previously from $55.00) on shares of Paychex in a research report on Wednesday, October 4th. Two equities research analysts have rated the stock with a sell rating and twelve have issued a hold rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $62.10.
In other news, insider Michael E. Gioja sold 34,311 shares of Paychex stock in a transaction on Thursday, January 4th. The shares were sold at an average price of $68.91, for a total transaction of $2,364,371.01. Following the transaction, the insider now owns 63,374 shares in the company, valued at approximately $4,367,102.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Jennifer R. Vossler sold 10,000 shares of Paychex stock in a transaction on Tuesday, January 16th. The stock was sold at an average price of $68.29, for a total transaction of $682,900.00. Following the transaction, the vice president now owns 31,578 shares in the company, valued at approximately $2,156,461.62. The disclosure for this sale can be found here. In the last ninety days, insiders sold 50,311 shares of company stock valued at $3,429,471. 11.70% of the stock is currently owned by insiders.
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Paychex Company Profile
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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