Just the Facts on Paychex, Inc. (PAYX)

Paychex, Inc. (PAYX) is an interesting player in the Services space, with a focus on Staffing & Outsourcing Services. The stock has been active on the tape, currently trading at $68.07, up from yesterday’s close by 1.45%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Paychex, Inc. (PAYX) currently trades with a market capitalization of $24.12 Billion. That value represents a market adjusting for revenues that have been growing by 8.88 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.03 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.62 on a per share basis this quarter. Perhaps, that suggests something about why 10.82% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Paychex, Inc. recorded a 52-week high of $73.10. It is now trading 5.03% off that level. The stock is trading $62.77 its 50-day moving average by -5.3%. The stock carved out a 52-week low down at $54.20.

In recent action, Paychex, Inc. (PAYX) has made a move of +10.52% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 12.97, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.30% with $320.36 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PAYX.

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