Paychex, Inc. $PAYX Shares Sold by Nordea Investment Management AB

Nordea Investment Management AB reduced its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 8.2% in the 4th quarter, HoldingsChannel.com reports. The institutional investor owned 1,157,485 shares of the business services provider’s stock after selling 102,891 shares during the period. Nordea Investment Management AB’s holdings in Paychex were worth $130,703,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in PAYX. Heartwood Wealth Advisors LLC bought a new position in Paychex during the 3rd quarter valued at $25,000. Vermillion & White Wealth Management Group LLC acquired a new position in Paychex during the 3rd quarter worth $27,000. Stance Capital LLC bought a new stake in shares of Paychex in the 3rd quarter worth about $31,000. MMA Asset Management LLC bought a new stake in shares of Paychex in the 3rd quarter worth about $32,000. Finally, Westfuller Advisors LLC acquired a new stake in shares of Paychex in the 3rd quarter valued at about $35,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. decreased their price target on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research note on Monday, December 22nd. Citigroup cut their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, December 22nd. Stephens reduced their target price on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Guggenheim initiated coverage on Paychex in a research report on Thursday. They issued a “neutral” rating for the company. Finally, BMO Capital Markets lowered their price target on Paychex from $121.00 to $103.00 and set a “market perform” rating for the company in a report on Friday, March 13th. One research analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $121.38.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $92.55 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex, Inc. has a fifty-two week low of $86.89 and a fifty-two week high of $161.24. The firm has a 50-day simple moving average of $98.48 and a 200 day simple moving average of $112.14. The company has a market cap of $33.22 billion, a PE ratio of 20.99 and a beta of 0.91.

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

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were given 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 presently 97.96%.

Paychex declared that its board has initiated a share buyback plan on Friday, January 16th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

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.