Paychex, Inc. (NASDAQ:PAYX) to Issue Quarterly Dividend of $0.98

Paychex, Inc. (NASDAQ:PAYXGet Free Report) declared a quarterly dividend on Wednesday, July 10th, RTT News reports. Stockholders of record on Thursday, August 8th will be given a dividend of 0.98 per share by the business services provider on Wednesday, August 28th. This represents a $3.92 annualized dividend and a dividend yield of 3.36%.

Paychex has increased its dividend by an average of 11.7% annually over the last three years and has increased its dividend every year for the last 14 years. Paychex has a dividend payout ratio of 74.2% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Paychex to earn $5.33 per share next year, which means the company should continue to be able to cover its $3.92 annual dividend with an expected future payout ratio of 73.5%.

Paychex Price Performance

NASDAQ:PAYX traded down $0.28 during trading hours on Wednesday, hitting $116.74. 208,574 shares of the company’s stock traded hands, compared to its average volume of 1,829,820. Paychex has a 52 week low of $106.27 and a 52 week high of $129.70. The business’s fifty day simple moving average is $121.86 and its two-hundred day simple moving average is $121.51. The company has a quick ratio of 1.24, a current ratio of 1.37 and a debt-to-equity ratio of 0.21. The firm has a market cap of $42.02 billion, a P/E ratio of 25.06, a P/E/G ratio of 3.07 and a beta of 1.00.

Paychex (NASDAQ:PAYXGet Free Report) last issued its quarterly earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.02. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The firm had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter last year, the company posted $0.97 EPS. The company’s revenue for the quarter was up 5.3% on a year-over-year basis. On average, research analysts anticipate that Paychex will post 4.99 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on PAYX shares. TD Cowen decreased their price objective on Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a report on Wednesday, April 3rd. Bank of America upped their price target on Paychex from $111.00 to $113.00 and gave the company an “underperform” rating in a research report on Thursday, June 27th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $130.00 price objective on shares of Paychex in a research report on Thursday, June 27th. Wedbush restated a “neutral” rating and set a $115.00 target price on shares of Paychex in a report on Wednesday, April 3rd. Finally, Robert W. Baird cut their price target on shares of Paychex from $126.00 to $124.00 and set a “neutral” rating on the stock in a report on Thursday, June 27th. Two research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $122.46.

View Our Latest Stock Report on PAYX

Insider Activity

In other news, Chairman Martin Mucci sold 101,490 shares of the stock in a transaction that occurred on Monday, July 1st. The shares were sold at an average price of $117.27, for a total transaction of $11,901,732.30. Following the sale, the chairman now owns 437,345 shares in the company, valued at $51,287,448.15. The transaction was disclosed in a filing with the SEC, which is available at this link. In other news, Director David J. S. Flaschen sold 19,709 shares of the firm’s stock in a transaction on Friday, May 24th. The shares were sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the sale, the director now directly owns 5,383 shares in the company, valued at approximately $670,452.65. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Martin Mucci sold 101,490 shares of the firm’s stock in a transaction on Monday, July 1st. The shares were sold at an average price of $117.27, for a total transaction of $11,901,732.30. Following the sale, the chairman now owns 437,345 shares in the company, valued at $51,287,448.15. The disclosure for this sale can be found here. Corporate insiders own 11.50% of the company’s stock.

Paychex Company Profile

(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.

Further Reading

Dividend History for Paychex (NASDAQ:PAYX)

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