Paychex’s (PAYX) “Underperform” Rating Reaffirmed at Royal Bank Of Canada
Royal Bank Of Canada reiterated their underperform rating on shares of Paychex, Inc. (NASDAQ:PAYX) in a research report released on Wednesday. The brokerage currently has a $57.00 price objective on the business services provider’s stock, up from their previous price objective of $54.00.
A number of other research firms also recently issued reports on PAYX. BidaskClub downgraded shares of Paychex from a sell rating to a strong sell rating in a report on Saturday, July 1st. Robert W. Baird reissued a hold rating and issued a $64.00 price objective on shares of Paychex in a report on Wednesday. Wedbush reissued a neutral rating and issued a $61.25 price objective (down previously from $65.00) on shares of Paychex in a report on Tuesday, June 6th. Morgan Stanley raised shares of Paychex from an underweight rating to an equal weight rating and set a $55.00 price objective for the company in a report on Wednesday, August 16th. They noted that the move was a valuation call. Finally, Stifel Nicolaus reissued a hold rating and issued a $61.00 price objective on shares of Paychex in a report on Friday, August 18th. Five research analysts have rated the stock with a sell rating, twelve have issued a hold rating and two have assigned a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $60.07.
Shares of Paychex (NASDAQ PAYX) traded up 1.02% on Wednesday, hitting $63.25. 2,401,918 shares of the stock were exchanged. Paychex has a one year low of $52.78 and a one year high of $63.31. The firm has a market capitalization of $22.73 billion, a PE ratio of 28.11 and a beta of 0.98. The company has a 50-day moving average price of $57.82 and a 200-day moving average price of $58.19.
Paychex (NASDAQ:PAYX) last announced its earnings results on Tuesday, October 3rd. The business services provider reported $0.62 EPS for the quarter, topping the consensus estimate of $0.60 by $0.02. The business had revenue of $816.80 million during the quarter, compared to the consensus estimate of $816.34 million. Paychex had a net margin of 26.01% and a return on equity of 43.33%. Paychex’s revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.60 EPS. Equities research analysts expect that Paychex will post $2.38 earnings per share for the current year.
In related news, CEO Martin Mucci sold 30,000 shares of the company’s stock in a transaction that occurred on Thursday, July 13th. The shares were sold at an average price of $57.04, for a total transaction of $1,711,200.00. Following the completion of the transaction, the chief executive officer now directly owns 237,754 shares in the company, valued at approximately $13,561,488.16. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Joseph M. Tucci sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, July 10th. The stock was sold at an average price of $57.82, for a total transaction of $346,920.00. Following the transaction, the director now owns 53,621 shares of the company’s stock, valued at $3,100,366.22. The disclosure for this sale can be found here. Insiders sold a total of 112,270 shares of company stock valued at $6,543,888 over the last 90 days. Corporate insiders own 11.70% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in PAYX. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position in Paychex by 28.4% during the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 23,690 shares of the business services provider’s stock worth $1,395,000 after purchasing an additional 5,239 shares in the last quarter. Caldwell & Orkin Inc. acquired a new position in Paychex during the 1st quarter worth approximately $3,481,000. Paragon Capital Management LLC increased its position in Paychex by 8.6% during the 1st quarter. Paragon Capital Management LLC now owns 208,126 shares of the business services provider’s stock worth $12,258,000 after purchasing an additional 16,431 shares in the last quarter. Ameriprise Financial Inc. increased its position in Paychex by 23.8% during the 1st quarter. Ameriprise Financial Inc. now owns 4,237,537 shares of the business services provider’s stock worth $248,742,000 after purchasing an additional 813,930 shares in the last quarter. Finally, Toronto Dominion Bank increased its position in Paychex by 52.1% during the 1st quarter. Toronto Dominion Bank now owns 89,236 shares of the business services provider’s stock worth $5,257,000 after purchasing an additional 30,557 shares in the last quarter. Institutional investors and hedge funds own 67.31% of the company’s stock.
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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