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Paychex’s Revenue and Income Rose in 1Q16

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Paychex’s price movement

Paychex (PAYX) has a market cap of $17.20 billion. Paychex’s YTD (year-to-date) price movement is stable. After its 1Q16 earnings report, PAYX rose by 3.52% to close at $47.63 per share as of September 30, 2015, with increases in revenue and income of 4.44% and 29.71%, respectively. The price movement on weekly, monthly, and YTD bases is 2.67%, 6.65%, and 5.77%, respectively. The stock is trading at 2.78% on a trailing five-day basis.

Technically, PAYX has broken all the major supports in 2015 and is now trading above all three moving day averages. Currently, it’s trading at 4.28% above the 20-day moving average, 2.95% above the 50-day moving average, and 0.56% above the 200-day moving average.

The ALPS Sector Dividend Dogs ETF (SDOG) invests 1.90% of its holdings in Paychex. The ETF tracks an equal-weighted index of the five highest-yielding S&P 500 securities in each sector. The YTD price movement for SDOG is -10.31% as of September 29, 2015.

Take a look at Paychex’s (PAYX) competitors by market cap.

  • Automatic Data Processing (ADP) — $37.39 billion
  • Intuit (INTU) — $24.61 billion
  • Equifax (EFX) — $11.49 billion
  • TriNet Group (TNET) — $1.19 billion
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Paychex in 1Q16

The company reported a net revenue of $723.0 million in 1Q16, an increase of 4.44% compared to net revenue of $692.2 million in 4Q15. Its revenue from payroll service and human resource services has increased by 5.74% and 2.68% in 1Q16. Its net income and EPS (earnings per share) has increased to $209.1 million and $0.58 per share in 1Q16, an increase of 29.71% and 31.81%, respectively, on a quarterly basis.

The company’s cash and cash equivalents have been reported as $455.9 million in 1Q16. The current ratio has increased by 1.80% and the debt-to-equity ratio has reduced by 11.02% in 1Q16.

On June 29, 2015, the company launched Paychex Flex Hiring, the module for its cloud-based human capital management (HCM) platform, Paychex Flex. It delivers access to payroll, HR, and benefits information for a streamlined and integrated approach to workforce management.

About Paychex

Paychex is involved in payroll, human resources, and outsourcing. The company offers services including payroll processing, retirement services, insurance, and fully outsourced human resource solutions. These services are customized based on the business and its requirements.

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