Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, October 14th, RTT News reports. Stockholders of record on Monday, November 1st will be paid a dividend of 0.66 per share by the business services provider on Monday, November 29th. This represents a $2.64 annualized dividend and a dividend yield of 2.22%.
Paychex has increased its dividend payment by 29.2% over the last three years and has raised its dividend annually for the last 1 consecutive years. Paychex has a dividend payout ratio of 84.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Paychex to earn $3.61 per share next year, which means the company should continue to be able to cover its $2.56 annual dividend with an expected future payout ratio of 70.9%.
NASDAQ PAYX traded up $1.47 during trading on Thursday, hitting $118.93. The company’s stock had a trading volume of 35,461 shares, compared to its average volume of 1,646,543. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.25 and a quick ratio of 1.25. Paychex has a fifty-two week low of $79.63 and a fifty-two week high of $119.38. The company has a market cap of $42.89 billion, a PE ratio of 39.08, a P/E/G ratio of 4.09 and a beta of 0.91. The business’s 50 day simple moving average is $113.54 and its 200-day simple moving average is $106.99.
A number of research firms have weighed in on PAYX. Deutsche Bank Aktiengesellschaft boosted their price objective on Paychex from $103.00 to $115.00 and gave the stock a “hold” rating in a research note on Friday, October 1st. JPMorgan Chase & Co. boosted their price objective on Paychex from $105.00 to $111.00 and gave the stock an “underweight” rating in a research note on Tuesday, August 17th. Barclays boosted their price objective on Paychex from $106.00 to $115.00 and gave the stock an “equal weight” rating in a research note on Monday, October 4th. Robert W. Baird boosted their price objective on Paychex from $111.00 to $120.00 and gave the stock a “neutral” rating in a research note on Monday, October 4th. Finally, Jefferies Financial Group boosted their price objective on Paychex from $95.00 to $115.00 and gave the stock a “hold” rating in a research note on Friday, June 25th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat, Paychex currently has a consensus rating of “Hold” and a consensus target price of $109.83.
Paychex announced that its Board of Directors has approved a stock buyback program on Thursday, July 8th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the business services provider to purchase up to 1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.
In other Paychex news, VP Robert L. Schrader sold 686 shares of the firm’s stock in a transaction on Sunday, August 1st. The stock was sold at an average price of $113.82, for a total transaction of $78,080.52. Following the completion of the transaction, the vice president now owns 12,411 shares of the company’s stock, valued at $1,412,620.02. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Efrain Rivera sold 90,613 shares of the firm’s stock in a transaction on Friday, July 16th. The stock was sold at an average price of $112.43, for a total value of $10,187,619.59. Following the transaction, the chief financial officer now directly owns 85,452 shares of the company’s stock, valued at approximately $9,607,368.36. The disclosure for this sale can be found here. Insiders sold a total of 249,477 shares of company stock valued at $28,072,980 over the last three months. Insiders own 11.70% of the company’s stock.
Paychex Company Profile
Paychex, Inc engages in the provision of human capital management solutions for payroll, human resource, insurance and retirement for small and medium sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services.
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