Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, July 11th, RTT News reports. Investors of record on Thursday, August 1st will be paid a dividend of 0.62 per share by the business services provider on Thursday, August 22nd. This represents a $2.48 dividend on an annualized basis and a yield of 2.89%. The ex-dividend date is Wednesday, July 31st.
Paychex has increased its dividend payment by an average of 10.9% annually over the last three years and has increased its dividend annually for the last 8 consecutive years. Paychex has a dividend payout ratio of 87.3% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Paychex to earn $3.34 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 74.3%.
Shares of Paychex stock opened at $85.72 on Friday. The company has a market capitalization of $30.64 billion, a P/E ratio of 30.18, a price-to-earnings-growth ratio of 3.07 and a beta of 0.86. The firm’s 50 day moving average is $85.65. Paychex has a twelve month low of $61.32 and a twelve month high of $88.43. The company has a current ratio of 1.17, a quick ratio of 1.11 and a debt-to-equity ratio of 0.30.
PAYX has been the subject of a number of research reports. Credit Suisse Group raised shares of Mosaic from an “underperform” rating to a “neutral” rating and set a $27.49 target price for the company in a report on Thursday, March 28th. Sanford C. Bernstein cut shares of Encana from an “outperform” rating to a “market perform” rating in a report on Tuesday, April 30th. William Blair reaffirmed a “market perform” rating on shares of Paychex in a report on Thursday, June 27th. Bank of America started coverage on shares of Guangshen Railway Co. Ltd ADR Class H in a research note on Wednesday, June 26th. They issued an “underperform” rating for the company. Finally, Barclays reissued a “sell” rating on shares of easyJet in a research note on Monday, April 1st. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating and one has issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $75.08.
In related news, insider Stephanie L. Schaeffer sold 1,791 shares of the firm’s stock in a transaction on Saturday, July 6th. The shares were sold at an average price of $85.31, for a total transaction of $152,790.21. Following the completion of the transaction, the insider now directly owns 46,355 shares of the company’s stock, valued at $3,954,545.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Stephanie L. Schaeffer sold 14,893 shares of the firm’s stock in a transaction on Thursday, May 16th. The shares were sold at an average price of $86.76, for a total transaction of $1,292,116.68. Following the transaction, the insider now directly owns 63,039 shares of the company’s stock, valued at $5,469,263.64. The disclosure for this sale can be found here. Over the last three months, insiders sold 106,353 shares of company stock valued at $9,026,405. Corporate insiders own 11.80% of the company’s stock.
Paychex, Inc provides payroll, human resource (HR), retirement, and insurance services for small to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.
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