Simmons Bank Decreases Stock Position in Paychex, Inc. (NASDAQ:PAYX)

Simmons Bank cut its holdings in Paychex, Inc. (NASDAQ:PAYX) by 7.6% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,056 shares of the business services provider’s stock after selling 169 shares during the quarter. Simmons Bank’s holdings in Paychex were worth $245,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. OFI Invest Asset Management bought a new position in shares of Paychex during the third quarter valued at $26,000. Carmel Capital Partners LLC purchased a new stake in shares of Paychex during the 3rd quarter valued at about $28,000. Larson Financial Group LLC grew its stake in shares of Paychex by 91.5% in the third quarter. Larson Financial Group LLC now owns 272 shares of the business services provider’s stock worth $31,000 after acquiring an additional 130 shares during the period. Fortis Group Advisors LLC purchased a new position in shares of Paychex during the third quarter valued at approximately $34,000. Finally, Gradient Investments LLC raised its holdings in shares of Paychex by 39.8% during the third quarter. Gradient Investments LLC now owns 351 shares of the business services provider’s stock valued at $40,000 after purchasing an additional 100 shares during the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Down 0.5 %

PAYX stock traded down $0.59 during trading on Wednesday, hitting $121.20. 490,262 shares of the company’s stock traded hands, compared to its average volume of 1,771,097. Paychex, Inc. has a 1 year low of $104.09 and a 1 year high of $129.70. The business has a fifty day simple moving average of $121.40 and a two-hundred day simple moving average of $120.48. The firm has a market capitalization of $43.63 billion, a P/E ratio of 26.30, a PEG ratio of 3.39 and a beta of 0.93. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.21.

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

Paychex Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Stockholders of record on Friday, May 10th will be given a $0.98 dividend. The ex-dividend date is Thursday, May 9th. This is a positive change from Paychex’s previous quarterly dividend of $0.89. This represents a $3.92 dividend on an annualized basis and a dividend yield of 3.23%. Paychex’s dividend payout ratio is 85.40%.

Paychex declared that its Board of Directors has approved a stock repurchase program on Friday, January 19th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 0.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Bank of America lifted their target price on shares of Paychex from $108.00 to $111.00 and gave the stock an “underperform” rating in a research report on Wednesday, April 3rd. Evercore ISI reissued an “in-line” rating and issued a $118.00 target price on shares of Paychex in a report on Tuesday, March 26th. TD Cowen cut their price target on Paychex from $122.00 to $121.00 and set a “hold” rating for the company in a research note on Wednesday, April 3rd. Wedbush reiterated a “neutral” rating and issued a $115.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $130.00 target price on shares of Paychex in a research report on Wednesday, April 3rd. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price 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.