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Paychex Inc . (NASDAQ:PAYX) has reached a remarkable milestone, with its stock price hitting an all-time high of $159.81. This peak reflects a significant uptrend in the company’s market performance, showcasing a robust 1-year total return of 34.75%. According to InvestingPro data, the company maintains impressive gross profit margins of 72% and has maintained dividend payments for 38 consecutive years, with 11 years of consecutive dividend increases. Investors have shown increased confidence in Paychex, a leading provider of payroll, human resource, and benefits outsourcing services for small- to medium-sized businesses. The company’s ability to achieve this record-setting price level underscores its strong financial health, earning a "GOOD" overall financial health score from InvestingPro. While current trading levels suggest the stock is overvalued relative to its Fair Value, analysts maintain positive growth expectations with a forecasted EPS of $5.03 for FY2025. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report for deeper analysis of PAYX’s market position.
In other recent news, Paychex has completed its acquisition of Paycor (NASDAQ:PYCR) HCM, Inc. for approximately $4.1 billion. This merger is expected to enhance Paychex’s technology and service capabilities, with projected cost synergies of over $80 million annually by fiscal 2026. Paychex also announced a 10% increase in its quarterly cash dividend to $1.08 per share, reflecting its commitment to returning value to shareholders. Additionally, the company issued $4.2 billion in senior notes with varying maturities and interest rates, a strategic move aimed at securing long-term financing. RBC Capital has maintained its Sector Perform rating for Paychex, with a price target of $165, noting the company’s alignment with fiscal year 2026 guidance. The firm highlighted Paychex’s potential for increased cost synergy targets and strong revenue synergies. Founder B. Thomas Golisano will retire from the board in July 2025, marking the end of an era for the company. Under his leadership, Paychex grew to serve nearly 800,000 clients, generating annual revenues over $5 billion.
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