Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, October 14th, RTT News reports. Shareholders 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 dividend on an annualized basis and a yield of 2.22%.
Paychex has raised its dividend payment by 29.2% over the last three years and has increased 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 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 hours on Thursday, hitting $118.93. The company had a trading volume of 35,461 shares, compared to its average volume of 1,646,543. The company has a market capitalization of $42.89 billion, a PE ratio of 39.08, a price-to-earnings-growth ratio of 4.09 and a beta of 0.91. The stock has a 50-day moving average price of $113.54 and a 200 day moving average price of $106.99. Paychex has a 52 week low of $79.63 and a 52 week high of $119.38. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.25 and a quick ratio of 1.25.
PAYX has been the subject of several recent analyst reports. Wolfe Research raised their price target on Paychex from $94.00 to $105.00 and gave the stock an “underperform” rating in a report on Friday, July 2nd. Robert W. Baird lifted their target price on Paychex from $111.00 to $120.00 and gave the stock a “neutral” rating in a report on Monday, October 4th. Stifel Nicolaus lifted their target price on Paychex from $114.00 to $118.00 and gave the stock a “hold” rating in a report on Thursday, September 30th. Deutsche Bank Aktiengesellschaft lifted their target price on Paychex from $103.00 to $115.00 and gave the stock a “hold” rating in a report on Friday, October 1st. Finally, Argus lifted their target price on Paychex from $106.00 to $118.00 and gave the stock a “buy” rating in a report on Monday, June 28th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, Paychex currently has a consensus rating of “Hold” and an average price target of $109.83.
Paychex announced that its Board of Directors has authorized a stock repurchase program on Thursday, July 8th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the business services provider to reacquire up to 1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its shares are undervalued.
In related news, Director David J. S. Flaschen sold 10,850 shares of the stock in a transaction dated Friday, July 16th. The shares were sold at an average price of $112.41, for a total value of $1,219,648.50. Following the completion of the transaction, the director now owns 1,879 shares of the company’s stock, valued at $211,218.39. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Martin Mucci sold 137,713 shares of the firm’s stock in a transaction that occurred on Friday, July 16th. The stock was sold at an average price of $112.55, for a total transaction of $15,499,598.15. Following the sale, the chief executive officer now directly owns 410,374 shares of the company’s stock, valued at approximately $46,187,593.70. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 249,477 shares of company stock valued at $28,072,980. Insiders own 11.70% of the company’s stock.
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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