Paychex Inc. (PAYX) Stock: Should Investors Follow These Insider Trades?

SNOW Stock
SNOW Stock

Paychex Inc. (NASDAQ:PAYX) saw a downside of -2.94% to $115.13 after subtracting -$3.49 on Wednesday. The 5-day average trading volume is 1,407,578 shares of the company’s common stock. It has gained $120.96 in the past week and touched a new high 3 times within the past 5 days. An average of 1,459,365 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,594,686.

PAYX’s 1-month performance is 3.35% or -$1.18 on its low of $112.41 reached on 01/25/23. The company’s shares have touched a 52-week low of $105.66 and high of $141.92, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, PAYX has achieved 2.65% or -$0.72 and has reached a new high 7 times. However, the current price is down -18.88% from the 52-week high price.

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Insider Transactions

PAYX stock investors last saw insider trading activity on Jan 13.Gibson John B (President and CEO) most recently sold 194 shares at $120.31 per share on Jan 13. This transaction cost the insider $23,340. Sr. Vice President, Gioja Michael E, sold 13,744 shares at a price of $115.30 on Dec 28. Then, on Oct 20, Sr. Vice President, CFO RIVERA EFRAIN sold 298 shares at a price of $111.06 per share. This transaction amounted to $33,096.

Valuation Metrics

PAYX stock has a beta of 0.99. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 8.70 while the price-to-book (PB) in the most recent quarter is 13.34, with the price to cash flow ratio at 78.88.

Paychex Inc.’s quick ratio for the period ended November 29 was 1.30, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending November 29 was 0.25, while the total debt to equity was 0.25. The firm’s gross profit as reported stood at $3.26 billion against revenue of $4.61 billion.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 7.83% to $360.3 million, while revenue of $379.2 million was -5.25% off the previous quarter. Analysts expected PAYX to announce $0.95 per share in earnings in its latest quarter, but it posted $0.99, representing a 4.20% surprise. EBITDA for the quarter stood at more than $576.3 million. PAYX stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 6.01 billion, with total debt at $874.8 million. Shareholders hold equity totaling $360.47 million.

Let’s look briefly at Paychex Inc. (PAYX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 40.26% to suggest the stock is trending Neutral, with historical volatility in this time period at 25.13%.

The stock’s 5-day moving average is $117.38, reflecting a -2.04% or -$2.40 change from its current price. PAYX is currently trading -1.01% above its 20-day SMA, -6.90% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -5.39% and SMA200 by-17.88%.

Stochastic %K and %D was 60.92% and 63.43% and the average true range (ATR) pointed at 3.00. The RSI (14) points at 43.33%, while the 14-day stochastic is at 28.36% with the period’s ATR at 2.90. The stock’s 9-day MACD Oscillator is pointing at -0.26 and 0.04 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Paychex Inc. (NASDAQ: PAYX), Barclays downgraded it to an Underweight rating. They previously had an Equal weight rating on the stock. Analysts offering their rating for PAYX stock have a consensus rating for the stock as Hold. Currently, 3 brokerage advisors rate PAYX as a “sell,”, while 15 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 3 have offered a “buy” rating.


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