Confluence Investment Management LLC Lowers Stock Position in Paychex, Inc. $PAYX

Confluence Investment Management LLC cut its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 3.9% in the 4th quarter, HoldingsChannel reports. The firm owned 987,259 shares of the business services provider’s stock after selling 40,001 shares during the period. Paychex makes up 1.7% of Confluence Investment Management LLC’s portfolio, making the stock its 21st biggest position. Confluence Investment Management LLC’s holdings in Paychex were worth $110,751,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of PAYX. Holos Integrated Wealth LLC bought a new position in Paychex in the fourth quarter valued at $163,000. First Financial Bank Trust Division lifted its stake in Paychex by 14.9% during the fourth quarter. First Financial Bank Trust Division now owns 3,185 shares of the business services provider’s stock worth $357,000 after purchasing an additional 414 shares during the last quarter. Triumph Capital Management purchased a new position in shares of Paychex in the 3rd quarter worth about $76,000. Farmers National Bank purchased a new position in shares of Paychex in the 3rd quarter worth about $315,000. Finally, Allworth Financial LP increased its position in shares of Paychex by 1.1% during the 3rd quarter. Allworth Financial LP now owns 11,884 shares of the business services provider’s stock valued at $1,506,000 after purchasing an additional 124 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Stock Up 1.2%

Shares of NASDAQ:PAYX opened at $91.71 on Friday. Paychex, Inc. has a 1 year low of $86.89 and a 1 year high of $161.24. The company has a market cap of $32.92 billion, a PE ratio of 20.80 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The stock’s 50-day moving average is $98.91 and its 200 day moving average is $112.79.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The business had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the business posted $1.14 EPS. Sell-side analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were issued a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio is currently 97.96%.

Paychex declared that its Board of Directors has initiated a share buyback plan on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have commented on PAYX shares. Royal Bank Of Canada decreased their price target on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research note on Thursday. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. Wells Fargo & Company reduced their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. JPMorgan Chase & Co. decreased their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research report on Monday, December 22nd. Finally, TD Cowen reissued a “hold” rating on shares of Paychex in a research note on Monday, December 1st. One analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $121.38.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.