Wall Street Analyst Downgrade Paychex Inc. [PAYX]. What else is Wall St. saying

Paychex Inc. [NASDAQ: PAYX] gained 0.14% or 0.16 points to close at $115.42 with a heavy trading volume of 1567817 shares. The company report on August 6, 2021 that Paychex is the Nation’s Largest 401(k) Recordkeeper.

PLANSPONSOR magazine recognizes Paychex as largest 401(k) Recordkeeper by number of plans for eleventh consecutive year.

For the eleventh consecutive year, Paychex, Inc., has earned distinction as the largest 401(k) recordkeeper by total number of 401(k) plans. The company serves more than 90,000 plans. The ranking was announced as part of the annual PLANSPONSOR magazine’s annual Recordkeeping Survey, a national publication dedicated to the pension and retirement industry.

It opened the trading session at $115.32, the shares rose to $115.64 and dropped to $114.75, the range by which the price of stock traded the whole day. The daily chart for PAYX points out that the company has recorded 27.69% gains over the past six months. However, it is still -57.83% lower than its most recent low trading price.

If we look at the average trading volume of 1.44M shares, PAYX reached to a volume of 1567817 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 $108.10 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 10.22. The Price to Book ratio for the last quarter was 14.11, with the Price to Cash per share for the same quarter was set at 2.87. Price to Free Cash Flow for PAYX in the course of the last twelve months was 120.95 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for PAYX stock

Paychex Inc. [PAYX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.49. With this latest performance, PAYX shares gained by 4.04% in over the last four-week period, additionally plugging by 27.69% over the last 6 months – not to mention a rise of 55.89% 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 57.17, with the RSI for the last a single of trading hit 52.18, and the three-weeks RSI is set at 59.93 for Paychex Inc. [PAYX]. The present Moving Average for the last 50 days of trading for this stock 110.80, while it was recorded at 116.12 for the last single week of trading, and 98.67 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 +36.01 and a Gross Margin at +68.66. Paychex Inc.’s Net Margin is presently recorded at +27.05.

Return on Total Capital for PAYX is now 38.48, given the latest momentum, and Return on Invested Capital for the company is 29.22. Return on Equity for this stock inclined to 38.31, with Return on Assets sitting at 12.18. When it comes to the capital structure of this company, Paychex Inc. [PAYX] has a Total Debt to Total Equity ratio set at 31.41. Additionally, PAYX Total Debt to Total Capital is recorded at 23.90, with Total Debt to Total Assets ending up at 9.90. Long-Term Debt to Equity for the company is recorded at 30.18, with the Long-Term Debt to Total Capital now at 22.97.

Reflecting on the efficiency of the workforce at the company, Paychex Inc. [PAYX] managed to generate an average of $73,167 per employee. Receivables Turnover for the company is 4.40 with a Total Asset Turnover recorded at a value of 0.45.Paychex Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

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

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 6.83%.

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

There are presently around $29,423 million, or 72.00% of PAYX stock, in the hands of institutional investors. The top three institutional holders of PAYX stocks are: BLACKROCK INC. with ownership of 30,111,943, which is approximately 1.961% of the company’s market cap and around 10.70% of the total institutional ownership; VANGUARD GROUP INC, holding 28,871,326 shares of the stock with an approximate value of $3.33 billion in PAYX stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $1.71 billion in PAYX stock with ownership of nearly 6.535% 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 572 institutional holders increased their position in Paychex Inc. [NASDAQ:PAYX] by around 11,936,442 shares. Additionally, 505 investors decreased positions by around 11,692,382 shares, while 240 investors held positions by with 231,290,276 shares. The mentioned changes placed institutional holdings at 254,919,100 shares, according to the latest SEC report filing. PAYX stock had 103 new institutional investments in for a total of 1,846,853 shares, while 82 institutional investors sold positions of 1,773,361 shares during the same period.

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