BofA Securities lifts Paychex Inc. [PAYX] price estimate. Who else is bullish?

Paychex Inc. [NASDAQ: PAYX] loss -2.26% or -2.59 points to close at $112.18 with a heavy trading volume of 4399776 shares. The company report on December 22, 2022 that Paychex, Inc. Reports Second Quarter Results: Solid Growth in Revenue and Diluted Earnings Per Share; Raises Outlook for the Year.

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Paychex, Inc. (the “Company,” “Paychex,” “we,” “our,” or “us”) today announced the following results for the quarter ended November 30, 2022 (the “second quarter”), as compared to the corresponding prior year period:.

It opened the trading session at $111.00, the shares rose to $112.22 and dropped to $108.00, the range by which the price of stock traded the whole day. The daily chart for PAYX points out that the company has recorded -8.37% loss over the past six months. However, it is still -6.17% lower than its most recent low trading price.

If we look at the average trading volume of 1.69M shares, PAYX reached to a volume of 4399776 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 $125.63 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.

BofA Securities have made an estimate for Paychex Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 09, 2022. While these analysts kept the previous recommendation, Cowen raised their target price from $130 to $145. The new note on the price target was released on January 11, 2022, representing the official price target for Paychex Inc. stock. Previously, the target price had yet another raise to $125, while Citigroup analysts kept a Neutral rating on PAYX stock. On October 05, 2021, analysts increased their price target for PAYX shares from 121 to 125.

The Average True Range (ATR) for Paychex Inc. is set at 3.04, with the Price to Sales ratio for PAYX stock in the period of the last 12 months amounting to 8.62. The Price to Book ratio for the last quarter was 12.88, with the Price to Cash per share for the same quarter was set at 3.38. Price to Free Cash Flow for PAYX in the course of the last twelve months was 96.46 with Quick ratio for the last quarter at 1.30.

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 -4.19. With this latest performance, PAYX shares dropped by -8.63% in over the last four-week period, additionally sinking by -8.37% over the last 6 months – not to mention a drop of -15.91% 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 33.40, with the RSI for the last a single of trading hit 25.77, and the three-weeks RSI is set at 38.41 for Paychex Inc. [PAYX]. The present Moving Average for the last 50 days of trading for this stock 118.06, while it was recorded at 114.54 for the last single week of trading, and 122.74 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 +39.90 and a Gross Margin at +70.59. Paychex Inc.’s Net Margin is presently recorded at +30.20.

Return on Equity for this stock inclined to 46.17, with Return on Assets sitting at 14.55.

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

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 14.31%.

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

There are presently around $29,316 million, or 73.20% of PAYX stock, in the hands of institutional investors. The top three institutional holders of PAYX stocks are: BLACKROCK INC. with ownership of 30,982,920, which is approximately 2.118% of the company’s market cap and around 10.70% of the total institutional ownership; VANGUARD GROUP INC, holding 30,275,266 shares of the stock with an approximate value of $3.4 billion in PAYX stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $1.65 billion in PAYX stock with ownership of nearly -5.55% of the company’s market capitalization.

600 institutional holders increased their position in Paychex Inc. [NASDAQ:PAYX] by around 13,251,275 shares. Additionally, 603 investors decreased positions by around 11,528,077 shares, while 296 investors held positions by with 236,548,881 shares. The mentioned changes placed institutional holdings at 261,328,233 shares, according to the latest SEC report filing. PAYX stock had 90 new institutional investments in for a total of 2,711,649 shares, while 67 institutional investors sold positions of 333,118 shares during the same period.


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