Graypoint LLC Reduces Position in Paychex, Inc. (NASDAQ:PAYX)

Graypoint LLC cut its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 3.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 3,457 shares of the business services provider’s stock after selling 118 shares during the quarter. Graypoint LLC’s holdings in Paychex were worth $412,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the business. Fairfield Bush & CO. purchased a new stake in shares of Paychex in the first quarter worth about $269,000. Vontobel Holding Ltd. lifted its holdings in shares of Paychex by 35.7% in the first quarter. Vontobel Holding Ltd. now owns 5,455 shares of the business services provider’s stock worth $747,000 after buying an additional 1,436 shares in the last quarter. Sei Investments Co. raised its stake in Paychex by 118.3% in the first quarter. Sei Investments Co. now owns 91,985 shares of the business services provider’s stock valued at $12,554,000 after purchasing an additional 49,851 shares in the last quarter. Prudential PLC purchased a new stake in Paychex in the first quarter valued at approximately $1,019,000. Finally, Brighton Jones LLC purchased a new stake in Paychex in the first quarter valued at approximately $237,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Paychex

In other news, VP Mark Anthony Bottini sold 15,481 shares of the stock in a transaction that occurred on Monday, January 29th. The shares were sold at an average price of $120.53, for a total value of $1,865,924.93. Following the transaction, the vice president now owns 82,690 shares in the company, valued at approximately $9,966,625.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 11.50% of the company’s stock.

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $123.00 on Monday. The firm’s 50-day moving average price is $122.23 and its 200-day moving average price is $120.09. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.21. The company has a market cap of $44.28 billion, a PE ratio of 26.80, a PEG ratio of 3.47 and a beta of 0.93. Paychex, Inc. has a 52-week low of $104.09 and a 52-week high of $129.70.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.37 by $0.01. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the prior year, the business earned $1.29 EPS. The business’s quarterly revenue was up 4.2% on a year-over-year basis. As a group, analysts anticipate that Paychex, Inc. will post 4.71 EPS for the current year.

Paychex announced that its board has initiated a stock repurchase plan on Friday, January 19th that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 0.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, February 27th. Stockholders of record on Tuesday, February 13th were paid a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 2.89%. The ex-dividend date of this dividend was Monday, February 12th. Paychex’s dividend payout ratio (DPR) is presently 77.56%.

Analysts Set New Price Targets

A number of brokerages have commented on PAYX. TD Cowen reduced their price target on shares of Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a research report on Wednesday, April 3rd. Bank of America increased their price target on shares of Paychex from $108.00 to $111.00 and gave the company an “underperform” rating in a research report on Wednesday, April 3rd. Stifel Nicolaus increased their price target on shares of Paychex from $124.00 to $130.00 and gave the company a “hold” rating in a research report on Friday, December 22nd. Evercore ISI restated an “in-line” rating and issued a $118.00 target price on shares of Paychex in a report on Tuesday, March 26th. Finally, Wedbush restated a “neutral” rating and issued a $115.00 target price on shares of Paychex in a report on Wednesday, April 3rd. Two equities research analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $123.00.

About Paychex

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.