Paychex, Inc. (NASDAQ:PAYX) Given Average Recommendation of “Reduce” by Brokerages

Shares of Paychex, Inc. (NASDAQ:PAYX) have earned a consensus recommendation of “Reduce” from the eighteen research firms that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation, one has assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $106.3750.

PAYX has been the subject of several research analyst reports. Wells Fargo & Company decreased their price objective on Paychex from $116.00 to $95.00 and set an “underweight” rating for the company in a report on Thursday, March 26th. UBS Group decreased their price objective on Paychex from $98.00 to $94.00 and set a “neutral” rating for the company in a report on Monday, April 13th. BMO Capital Markets increased their price objective on Paychex to $52.00 and gave the company an “outperform” rating in a report on Thursday, March 26th. Stephens decreased their price objective on Paychex from $125.00 to $105.00 and set an “equal weight” rating for the company in a report on Thursday, March 26th. Finally, Guggenheim initiated coverage on Paychex in a report on Thursday, March 19th. They issued a “neutral” rating for the company.

Institutional Investors Weigh In On Paychex

Several large investors have recently modified their holdings of PAYX. Vermillion & White Wealth Management Group LLC purchased a new stake in shares of Paychex during the third quarter worth approximately $27,000. Cornerstone Planning Group LLC raised its stake in shares of 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 purchasing an additional 268 shares during the last quarter. Stance Capital LLC purchased a new stake in shares of Paychex during the third quarter worth approximately $31,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Paychex during the fourth quarter worth approximately $31,000. Finally, MMA Asset Management LLC purchased a new stake in shares of Paychex during the third quarter worth approximately $32,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Stock Performance

Shares of PAYX opened at $95.51 on Friday. The stock has a 50 day moving average price of $92.24 and a 200 day moving average price of $100.84. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.13. The company has a market capitalization of $34.22 billion, a price-to-earnings ratio of 21.04 and a beta of 0.84. Paychex has a 52-week low of $85.45 and a 52-week high of $161.24.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.04. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The company’s revenue was up 19.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.49 earnings per share. Research analysts predict that Paychex will post 5.5 EPS for the current fiscal year.

Paychex Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th will be issued a $1.19 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This is an increase from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 annualized dividend and a dividend yield of 5.0%. Paychex’s dividend payout ratio is currently 104.85%.

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.