For Paychex Inc. [PAYX], Analyst sees a rise to $93. What next?

Paychex Inc. [NASDAQ: PAYX] gained 3.89% on the last trading session, reaching $86.54 price per share at the time. The company report on November 3, 2020 that Small Business Jobs Index Moderates as COVID-19 Cases Rise Throughout the U.S..

The report by Paychex and IHS Markit showed a 0.13 percent moderation in national job growth; however, job growth increased in the South for the second consecutive month.

The latest Paychex | IHS Markit Small Business Employment Watch shows a moderation in small business hiring from the previous month, declining 0.13 percent nationally to 94.32. Hourly earnings growth stood at 2.88 percent in October, while weekly hours worked remained positive, up 0.38 percent from last year.

Paychex Inc. represents 359.10 million in outstanding shares, while the company has a total market value of $31.19 billion with the latest information. PAYX stock price has been found in the range of $83.99 to $87.08.

If compared to the average trading volume of 1.60M shares, PAYX reached a trading volume of 1623577 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Paychex Inc. [PAYX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PAYX shares is $81.71 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PAYX stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Citigroup have made an estimate for Paychex Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 08, 2020. While these analysts kept the previous recommendation, Goldman raised their target price to Sell. The new note on the price target was released on July 14, 2020, representing the official price target for Paychex Inc. stock. Previously, the target price had yet another raise to $67, while Morgan Stanley analysts kept a Equal-Weight rating on PAYX stock.

The Average True Range (ATR) for Paychex Inc. is set at 2.11, with the Price to Sales ratio for PAYX stock in the period of the last 12 months amounting to 7.83. The Price to Book ratio for the last quarter was 11.18, with the Price to Cash per share for the same quarter was set at 11.60. Price to Free Cash Flow for PAYX in the course of the last twelve months was 67.53 with Quick ratio for the last quarter at 1.30.

Trading performance analysis for PAYX stock

Paychex Inc. [PAYX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.63. With this latest performance, PAYX shares gained by 6.25% in over the last four-week period, additionally plugging by 28.93% over the last 6 months – not to mention a rise of 3.69% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PAYX stock in for the last two-week period is set at 64.44, with the RSI for the last a single of trading hit 67.68, and the three-weeks RSI is set at 62.92 for Paychex Inc. [PAYX]. The present Moving Average for the last 50 days of trading for this stock 79.66, while it was recorded at 82.94 for the last single week of trading, and 74.91 for the last 200 days.

Paychex Inc. [PAYX]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Paychex Inc. [PAYX] shares currently have an operating margin of +36.15 and a Gross Margin at +68.30. Paychex Inc.’s Net Margin is presently recorded at +27.18.

Return on Total Capital for PAYX is now 40.95, given the latest momentum, and Return on Invested Capital for the company is 30.97. Return on Equity for this stock inclined to 40.66, with Return on Assets sitting at 12.61. When it comes to the capital structure of this company, Paychex Inc. [PAYX] has a Total Debt to Total Equity ratio set at 33.65. Additionally, PAYX Total Debt to Total Capital is recorded at 25.18, with Total Debt to Total Assets ending up at 10.80. Long-Term Debt to Equity for the company is recorded at 32.13, with the Long-Term Debt to Total Capital now at 24.04.

Reflecting on the efficiency of the workforce at the company, Paychex Inc. [PAYX] managed to generate an average of $69,500 per employee. Receivables Turnover for the company is 4.91 with a Total Asset Turnover recorded at a value of 0.46.Paychex Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

Paychex Inc. [PAYX]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Paychex Inc. posted 0.7/share EPS, while the average EPS was predicted by analysts to be reported at 0.68/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PAYX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Paychex Inc. go to 3.39%.

An analysis of insider ownership at Paychex Inc. [PAYX]

There are presently around $22,203 million, or 75.70% of PAYX stock, in the hands of institutional investors. The top three institutional holders of PAYX stocks are: BLACKROCK INC. with ownership of 34,574,913, which is approximately -4.224% of the company’s market cap and around 10.70% of the total institutional ownership; VANGUARD GROUP INC, holding 27,679,243 shares of the stock with an approximate value of $2.4 billion in PAYX stocks shares; and STATE STREET CORP, currently with $1.21 billion in PAYX stock with ownership of nearly -1.445% of the company’s market capitalization.

Positions in Paychex Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 457 institutional holders increased their position in Paychex Inc. [NASDAQ:PAYX] by around 24,018,186 shares. Additionally, 559 investors decreased positions by around 15,959,626 shares, while 181 investors held positions by with 216,586,588 shares. The mentioned changes placed institutional holdings at 256,564,400 shares, according to the latest SEC report filing. PAYX stock had 103 new institutional investments in for a total of 1,392,620 shares, while 99 institutional investors sold positions of 1,667,329 shares during the same period.

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