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Paychex Inc. (PAYX) Stock: A Value Analysis

The price-to-earnings ratio for Paychex Inc. (NASDAQ: PAYX) is 26.01x, which is above its average ratio. Moreover, the 36-month beta value for PAYX is 0.96. Analysts have varying opinions on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 13 as “hold,” and 3 as “sell.”

The average price recommended by analysts for Paychex Inc. (PAYX) is $121.72, which is $13.75 above the current market price. The public float for PAYX is 321.66M and currently, short sellers hold a 2.97% of that float. On May 26, 2023, PAYX’s average trading volume was 1.98M shares.

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PAYX) stock’s latest price update

The stock price of Paychex Inc. (NASDAQ: PAYX) has plunged by -0.42 when compared to previous closing price of 108.33, but the company has seen a -0.81% decline in its stock price over the last five trading sessions. Barron’s reported on 12/22/22 that Paychex Posts Earnings Beat, But the Stock Is Down. Here’s Why.

PAYX’s Market Performance

Paychex Inc. (PAYX) has experienced a -0.81% fall in stock performance for the past week, with a 2.38% rise in the past month, and a -2.79% drop in the past quarter. The volatility ratio for the week is 1.67%, and the volatility levels for the past 30 days are at 1.73% for PAYX. The simple moving average for the past 20 days is -0.08% for PAYX’s stock, with a -7.09% simple moving average for the past 200 days.

PAYX Trading at -0.91% from the 50-Day Moving Average

After a stumble in the market that brought PAYX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.65% of loss for the given period.

Volatility was left at 1.73%, however, over the last 30 days, the volatility rate increased by 1.67%, as shares surge +0.04% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.82% upper at present.

During the last 5 trading sessions, PAYX fell by -0.81%, which changed the moving average for the period of 200-days by -17.59% in comparison to the 20-day moving average, which settled at $107.97. In addition, Paychex Inc. saw -6.65% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at PAYX starting from VELLI JOSEPH M, who sale 4,336 shares at the price of $109.12 back on May 23. After this action, VELLI JOSEPH M now owns 69,090 shares of Paychex Inc., valued at $473,144 using the latest closing price.

Saunders-McClendon Karen E., the VP, Chief Human Resources Offi of Paychex Inc., sale 215 shares at $107.92 during a trade that took place back on Apr 14, which means that Saunders-McClendon Karen E. is holding 3,929 shares at $23,203 based on the most recent closing price.

Stock Fundamentals for PAYX

Current profitability levels for the company are sitting at:

  • +39.90 for the present operating margin
  • +70.59 for the gross margin

The net margin for Paychex Inc. stands at +30.20. The total capital return value is set at 46.79, while invested capital returns managed to touch 35.73. Equity return is now at value 46.90, with 15.60 for asset returns.

Based on Paychex Inc. (PAYX), the company’s capital structure generated 29.38 points at debt to equity in total, while total debt to capital is 22.71. Total debt to assets is 9.25, with long-term debt to equity ratio resting at 28.28. Finally, the long-term debt to capital ratio is 21.86.

When we switch over and look at the enterprise to sales, we see a ratio of 7.86, with the company’s debt to enterprise value settled at 0.02. The receivables turnover for the company is 3.89 and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.25.

Conclusion

To wrap up, the performance of Paychex Inc. (PAYX) has been bad in recent times. The stock has received a bearish of “sell” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.