Paychex, Inc. (NASDAQ:PAYX) Declares $1.19 Quarterly Dividend

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, July 16th. Shareholders of record on Tuesday, July 28th will be paid a dividend of 1.19 per share by the business services provider on Friday, August 28th. This represents a c) annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th.

Paychex has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 3 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 tumble. Equities analysts expect Paychex to earn $6.34 per share next year, which means the company should continue to be able to cover its $4.76 annual dividend with an expected future payout ratio of 75.1%.

Paychex Price Performance

Paychex stock opened at $114.70 on Friday. Paychex has a one year low of $85.45 and a one year high of $148.11. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The stock’s 50 day moving average is $99.64 and its 200 day moving average is $98.28. The firm has a market cap of $41.10 billion, a P/E ratio of 23.46 and a beta of 0.84.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts expect that Paychex will post 5.96 EPS for the current year.

Insider Buying and Selling at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.80% of the company’s stock.

Institutional Trading of Paychex

A number of institutional investors have recently made changes to their positions in PAYX. Tema ETFs LLC raised its holdings in Paychex by 8.8% in the 2nd quarter. Tema ETFs LLC now owns 5,403 shares of the business services provider’s stock valued at $531,000 after buying an additional 435 shares during the period. Salvus Wealth Management LLC increased its position in Paychex by 2.1% during the second quarter. Salvus Wealth Management LLC now owns 8,084 shares of the business services provider’s stock worth $795,000 after buying an additional 169 shares during the period. Bay Colony Advisory Group Inc d b a Bay Colony Advisors purchased a new position in shares of Paychex in the 2nd quarter valued at approximately $237,000. First Bank & Trust lifted its holdings in shares of Paychex by 83.1% in the 2nd quarter. First Bank & Trust now owns 30,635 shares of the business services provider’s stock valued at $3,012,000 after buying an additional 13,905 shares during the period. Finally, Fluent Financial LLC acquired a new stake in shares of Paychex in the 2nd quarter worth approximately $2,722,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Company Profile

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.