Capital International Investors Acquires 11,243,295 Shares of Paychex, Inc. $PAYX

Capital International Investors raised its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 59.1% during the fourth quarter, Holdings Channel.com reports. The fund owned 30,265,174 shares of the business services provider’s stock after buying an additional 11,243,295 shares during the period. Capital International Investors owned 0.08% of Paychex worth $3,395,583,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the business. 44 Wealth Management LLC raised its holdings in Paychex by 2.7% during the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after acquiring an additional 86 shares during the period. Smartleaf Asset Management LLC raised its holdings in Paychex by 3.5% during the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock valued at $381,000 after acquiring an additional 89 shares during the period. JPL Wealth Management LLC raised its holdings in Paychex by 0.3% during the third quarter. JPL Wealth Management LLC now owns 27,686 shares of the business services provider’s stock valued at $3,509,000 after acquiring an additional 92 shares during the period. Greenleaf Trust raised its holdings in Paychex by 1.7% during the fourth quarter. Greenleaf Trust now owns 5,834 shares of the business services provider’s stock valued at $654,000 after acquiring an additional 95 shares during the period. Finally, Moment Partners LLC raised its holdings in Paychex by 1.4% during the third quarter. Moment Partners LLC now owns 6,911 shares of the business services provider’s stock valued at $876,000 after acquiring an additional 98 shares during the period. 83.47% of the stock is owned by institutional investors.

Paychex Stock Up 1.1%

Shares of NASDAQ:PAYX opened at $100.53 on Friday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $161.24. The business has a 50 day simple moving average of $93.17 and a two-hundred day simple moving average of $100.42. The firm has a market capitalization of $36.02 billion, a PE ratio of 22.14 and a beta of 0.84. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.26 and a quick ratio of 1.26.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.04. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.78 billion. During the same quarter in the prior year, the firm earned $1.49 earnings per share. Paychex’s revenue was up 19.9% compared to the same quarter last year. On average, equities analysts predict that Paychex, Inc. will post 5.5 EPS for the current year.

Paychex Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were issued a dividend of $1.19 per share. This is an increase from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date was Wednesday, May 13th. Paychex’s dividend payout ratio (DPR) is currently 104.85%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Morgan Stanley reduced their target price on Paychex from $123.00 to $107.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 28th. Guggenheim assumed coverage on Paychex in a report on Thursday, March 19th. They issued a “neutral” rating on the stock. Wells Fargo & Company reduced their target price on Paychex from $116.00 to $95.00 and set an “underweight” rating on the stock in a report on Thursday, March 26th. Stephens reduced their target price on Paychex from $125.00 to $105.00 and set an “equal weight” rating on the stock in a report on Thursday, March 26th. Finally, Robert W. Baird reduced their price objective on Paychex from $148.00 to $125.00 and set a “neutral” rating on the stock in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average target price of $106.38.

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.