Royal Bank of Canada Reiterates Sector Perform Rating for Paychex (NASDAQ:PAYX)

Paychex (NASDAQ:PAYXGet Free Report)‘s stock had its “sector perform” rating restated by equities researchers at Royal Bank of Canada in a report released on Wednesday, Benzinga reports. They presently have a $130.00 price objective on the business services provider’s stock. Royal Bank of Canada’s target price points to a potential upside of 6.38% from the company’s current price.

Several other research analysts have also recently weighed in on the stock. Evercore ISI reissued an “in-line” rating and set a $118.00 price target on shares of Paychex in a research report on Tuesday, March 26th. JPMorgan Chase & Co. lowered their price target on shares of Paychex from $134.00 to $126.00 and set an “underweight” rating on the stock in a research report on Friday, December 22nd. Wedbush reissued a “neutral” rating and set a $115.00 price target on shares of Paychex in a research report on Wednesday. Barclays lowered their price target on shares of Paychex from $126.00 to $120.00 and set an “equal weight” rating on the stock in a research report on Friday, December 22nd. Finally, Citigroup lowered their price target on shares of Paychex from $130.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 26th. Two analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $122.77.

Read Our Latest Report on Paychex

Paychex Trading Up 0.1 %

Shares of PAYX opened at $122.20 on Wednesday. Paychex has a 52-week low of $104.09 and a 52-week high of $129.70. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.23. The firm’s fifty day moving average is $121.99 and its two-hundred day moving average is $119.57. The stock has a market cap of $43.97 billion, a PE ratio of 27.13, a price-to-earnings-growth ratio of 3.29 and a beta of 0.93.

Paychex (NASDAQ:PAYXGet Free Report) last announced its earnings results on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.01. The company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.46 billion. Paychex had a net margin of 31.62% and a return on equity of 46.37%. The firm’s quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.29 EPS. Research analysts forecast that Paychex will post 4.72 earnings per share for the current fiscal year.

Paychex announced that its Board of Directors has initiated a share buyback program on Friday, January 19th that allows the company to buyback $400.00 million in outstanding shares. This buyback authorization allows the business services provider to repurchase up to 0.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of the business’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the sale, the vice president now directly owns 82,690 shares in the company, valued at $9,966,625.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 11.50% of the company’s stock.

Institutional Trading of Paychex

Institutional investors and hedge funds have recently bought and sold shares of the business. Confluence Investment Management LLC purchased a new stake in shares of Paychex during the first quarter worth approximately $146,617,000. General Partner Inc. purchased a new stake in shares of Paychex during the first quarter worth approximately $76,000. Nomura Holdings Inc. purchased a new stake in shares of Paychex during the fourth quarter worth approximately $774,000. HighPoint Advisor Group LLC purchased a new stake in shares of Paychex during the fourth quarter worth approximately $642,000. Finally, Fairman Group LLC purchased a new stake in shares of Paychex during the fourth quarter worth approximately $65,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

About Paychex

(Get Free Report)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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