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

Paychex, Inc. (NASDAQ:PAYXGet Free Report) announced a quarterly dividend on Wednesday, July 10th, RTT News reports. Investors 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 raised its dividend by an average of 11.7% annually over the last three years and has raised its dividend annually for the last 14 consecutive years. Paychex has a dividend payout ratio of 74.2% indicating that its dividend is sufficiently covered by earnings. 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

PAYX traded down $0.28 on Wednesday, hitting $116.74. 208,574 shares of the company’s stock traded hands, compared to its average volume of 1,829,820. The company’s 50 day simple moving average is $121.86 and its 200-day simple moving average is $121.51. The firm has a market cap of $42.02 billion, a price-to-earnings ratio of 25.06, a P/E/G ratio of 3.07 and a beta of 1.00. Paychex has a one year low of $106.27 and a one year high of $129.70. The company has a current ratio of 1.37, a quick ratio of 1.24 and a debt-to-equity ratio of 0.21.

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

Analyst Upgrades and Downgrades

A number of brokerages have commented on PAYX. Barclays reduced their target price on Paychex from $120.00 to $118.00 and set an “equal weight” rating for the company in a report on Monday, July 1st. Robert W. Baird dropped their price objective on shares of Paychex from $126.00 to $124.00 and set a “neutral” rating for the company in a research note on Thursday, June 27th. Wedbush restated a “neutral” rating and issued a $115.00 price objective on shares of Paychex in a research report on Wednesday, April 3rd. Evercore ISI restated an “in-line” rating and issued a $118.00 target price on shares of Paychex in a report on Tuesday, March 26th. Finally, Bank of America boosted their target price on Paychex from $111.00 to $113.00 and gave the stock an “underperform” rating in a report on Thursday, June 27th. Two investment analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $122.46.

Check Out Our Latest Stock Analysis on PAYX

Insider Transactions at Paychex

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

About Paychex

(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)

Receive News & Ratings for Paychex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paychex and related companies with MarketBeat.com's FREE daily email newsletter.