Paychex Inc. (NASDAQ:PAYX) previous close was $101.75 while the outstanding shares total 360.60M. The firm has a beta of 0.90, a 12-month trailing P/E ratio of 35.33, and a growth ratio of 7.29. PAYX’s shares traded higher over the last trading session, gaining 1.26% on 06/08/21. The shares fell to a low of $101.93 before closing at $103.03. Intraday shares traded counted 0.93 million, which was 47.57% higher than its 30-day average trading volume of 1.78M. The stock’s Relative Strength Index (RSI) is 61.89, with weekly volatility at 1.56% and ATR at 1.66. The PAYX stock’s 52-week price range has touched low of $69.96 and a $102.99 high.
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Investors have identified the Staffing & Employment Services company Paychex Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $36.87 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Paychex Inc. (PAYX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PAYX, the company has in raw cash 841.4 million on their books with 7.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 6.62 billion total, with 5.36 billion as their total liabilities.
PAYX were able to record 783.7 million as free cash flow during the 10/06/2021 quarter of the year, this saw their quarterly net cash flow reduce by 392.4 million. In cash movements, the company had a total of 870.6 million as operating cash flow.
Potential earnings growth for Paychex Inc. (PAYX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 10/06/2021 quarter of the year, Paychex Inc. recorded a total of 1.11 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.79% coming in sequential stages and their sales for the 10/06/2021 quarter increasing by 11.51%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 328.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 783.3 million. This allows shareholders to hold on to 360.60M with the recently reported earning now reading 0.97 cents per share. This is a figure that compared to analyst’s prediction for their 10/06/2021 (0.96 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.21 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PAYX sounds very interesting.
Is the stock of PAYX attractive?
In related news, Director, TUCCI JOSEPH M sold 26,520 shares of the company’s stock in a transaction that recorded on May 06. The sale was performed at an average price of 100.56, for a total value of 2,666,851. As the sale deal closes, the Sr. VP, Service, Gibson John B now sold 113,318 shares of the company’s stock, valued at 11,251,344. Also, Director, VELLI JOSEPH M sold 3,753 shares of the company’s stock in a deal that was recorded on Apr 15. The shares were price at an average price of 96.93 per share, with a total market value of 363,778. Following this completion of acquisition, the Sr. Vice President, Gioja Michael E now holds 35,293 shares of the company’s stock, valued at 3,393,775. In the last 6 months, insiders have changed their ownership in shares of company stock by 10.60%.
4 out of 22 analysts covering the stock have rated it a Buy, while 14 have maintained a Hold recommendation on Paychex Inc.. 3 analysts has assigned a Sell rating on the PAYX stock. The 12-month mean consensus price target for the company’s shares has been set at $98.07.
