Paychex Inc. [PAYX] Revenue clocked in at $3.94 billion, up 16.41% YTD: What’s Next?

Paychex Inc. [NASDAQ: PAYX] jumped around 1.17 points on Thursday, while shares priced at $108.47 at the close of the session, up 1.09%. The company report on June 29, 2021 that Small Business Employment Gains Continue, Especially in Leisure and Hospitality.

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Job growth in the leisure and hospitality sector rebounded to pre-pandemic levels in June.

Despite the competitive hiring environment, small business employment growth grew 0.26 percent in June, according to aggregated payroll data of approximately 350,000 clients provided by Paychex. The data released in the latest report of the Paychex | IHS Markit Small Business Employment Watch shows momentum in job growth with the Small Business Jobs Index gaining 4.53 percent during the second quarter of 2021 (in part driven by the 2020 comparison period). Hiring is particularly strong in the leisure and hospitality sector, which gained 12.65 percent in the past quarter. Hourly earnings growth increased slightly, from 2.82 percent in May to 2.84 percent in June.

Paychex Inc. stock is now 16.41% up from its year-to-date (YTD) trading value. PAYX Stock saw the intraday high of $108.63 and lowest of $106.98 per share. The company’s 52-week high price is 108.23, which means current price is +27.16% above from all time high which was touched on 07/01/21.

Compared to the average trading volume of 1.62M shares, PAYX reached a trading volume of 1370820 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $98.34 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 3.00. 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.

Wolfe Research have made an estimate for Paychex Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on April 07, 2021. While these analysts kept the previous recommendation, Wells Fargo raised their target price to Overweight. The new note on the price target was released on December 18, 2020, representing the official price target for Paychex Inc. stock. Previously, the target price had yet another raise from $75 to $93, while Citigroup kept a Buy rating on PAYX stock.

The Average True Range (ATR) for Paychex Inc. is set at 1.50, with the Price to Sales ratio for PAYX stock in the period of the last 12 months amounting to 9.79. The Price to Book ratio for the last quarter was 13.15, with the Price to Cash per share for the same quarter was set at 2.78. Price to Free Cash Flow for PAYX in the course of the last twelve months was 94.55 with Quick ratio for the last quarter at 1.20.

How has PAYX stock performed recently?

Paychex Inc. [PAYX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.02. With this latest performance, PAYX shares gained by 6.47% in over the last four-week period, additionally plugging by 17.72% over the last 6 months – not to mention a rise of 42.16% 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 71.48, with the RSI for the last a single of trading hit 76.73, and the three-weeks RSI is set at 67.68 for Paychex Inc. [PAYX]. The present Moving Average for the last 50 days of trading for this stock 101.75, while it was recorded at 107.17 for the last single week of trading, and 93.03 for the last 200 days.

Paychex Inc. [PAYX]: Deeper insight into the fundamentals

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 1.20 and a Current Ratio set at 1.20.

Earnings analysis for Paychex Inc. [PAYX]

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 4.85%.

Insider trade positions for Paychex Inc. [PAYX]

There are presently around $27,599 million, or 72.30% of PAYX stock, in the hands of institutional investors. The top three institutional holders of PAYX stocks are: BLACKROCK INC. with ownership of 29,532,939, which is approximately -6.722% of the company’s market cap and around 10.60% of the total institutional ownership; VANGUARD GROUP INC, holding 28,803,026 shares of the stock with an approximate value of $3.12 billion in PAYX stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $1.51 billion in PAYX stock with ownership of nearly -11.547% of the company’s market capitalization.

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Positions in Paychex Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 543 institutional holders increased their position in Paychex Inc. [NASDAQ:PAYX] by around 15,333,829 shares. Additionally, 542 investors decreased positions by around 15,122,657 shares, while 211 investors held positions by with 223,981,379 shares. The mentioned changes placed institutional holdings at 254,437,865 shares, according to the latest SEC report filing. PAYX stock had 101 new institutional investments in for a total of 2,436,726 shares, while 80 institutional investors sold positions of 1,430,625 shares during the same period.

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