73,057 Shares in Paychex, Inc. $PAYX Purchased by Exencial Wealth Advisors LLC

Key Points

• Exencial Wealth Advisors LLC initiated a new position in Paychex in Q4, buying 73,057 shares valued at about $8.196 million per its latest Form 13F filing.
• Analyst sentiment has weakened recently—several firms cut targets and, according to MarketBeat, Paychex has a consensus rating of "Reduce" with a consensus target price of $106.38.
• Paychex beat quarterly estimates (EPS $1.71, revenue $1.81B), and its board approved a $1.0 billion share repurchase program (up to 2.5% of shares); the stock trades near $89.93 today.

Exencial Wealth Advisors LLC bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 73,057 shares of the business services provider's stock, valued at approximately $8,196,000.

A number of other institutional investors have also added to or reduced their stakes in the company. Comerica Bank grew its position in Paychex by 10.4% during the fourth quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock worth $13,653,000 after buying an additional 11,497 shares in the last quarter. Anchyra Partners LLC acquired a new stake in Paychex during the fourth quarter worth about $211,000. D.A. Davidson & CO. grew its position in Paychex by 7.7% during the fourth quarter. D.A. Davidson & CO. now owns 32,786 shares of the business services provider's stock worth $3,678,000 after buying an additional 2,345 shares in the last quarter. Atlas Legacy Advisors LLC grew its position in Paychex by 40.4% during the fourth quarter. Atlas Legacy Advisors LLC now owns 3,730 shares of the business services provider's stock worth $417,000 after buying an additional 1,073 shares in the last quarter. Finally, Verdence Capital Advisors LLC grew its position in Paychex by 20.6% during the fourth quarter. Verdence Capital Advisors LLC now owns 26,242 shares of the business services provider's stock worth $2,944,000 after buying an additional 4,477 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Morgan Stanley decreased their target price on Paychex from $123.00 to $107.00 and set an "equal weight" rating on the stock in a research report on Thursday, March 26th. Cantor Fitzgerald raised Paychex to a "strong sell" rating in a research report on Tuesday, January 27th. Wells Fargo & Company decreased their target price on Paychex from $116.00 to $95.00 and set an "underweight" rating on the stock in a research report on Thursday, March 26th. Guggenheim assumed coverage on Paychex in a research report on Thursday, March 19th. They set a "neutral" rating on the stock. Finally, Argus raised Paychex to a "strong-buy" rating in a research report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $106.38.

Paychex Stock Up 0.1%

Shares of PAYX opened at $89.93 on Tuesday. The stock has a market cap of $32.22 billion, a price-to-earnings ratio of 19.81 and a beta of 0.88. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.13. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $161.24. The company has a 50-day moving average price of $92.31 and a two-hundred day moving average price of $105.07.

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

Paychex declared that its Board of Directors has approved a share repurchase program on Friday, January 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Paychex Profile

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.

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