Alps Advisors Inc. Increases Holdings in Paychex, Inc. $PAYX

Key Points

• Alps Advisors Inc. increased its Paychex stake by 14.8% in the fourth quarter, adding 35,591 shares to reach 276,155 shares worth about $31 million.
• Analysts remain cautious on PAYX, with several firms cutting price targets and the stock carrying an average rating of “Reduce” and an average target of $106.63.
• Paychex reported solid quarterly results and raised its dividend: EPS of $1.71 beat estimates, revenue rose 19.9% year over year, and the quarterly dividend increased to $1.19 per share.

Alps Advisors Inc. raised its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 14.8% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 276,155 shares of the business services provider's stock after buying an additional 35,591 shares during the period. Alps Advisors Inc. owned about 0.08% of Paychex worth $30,979,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the stock. Principal Securities Inc. raised its stake in Paychex by 9.8% during the 4th quarter. Principal Securities Inc. now owns 19,272 shares of the business services provider's stock valued at $2,162,000 after buying an additional 1,721 shares during the last quarter. Aviva PLC raised its stake in Paychex by 5.5% during the 4th quarter. Aviva PLC now owns 271,944 shares of the business services provider's stock valued at $30,507,000 after buying an additional 14,287 shares during the last quarter. Founders Financial Alliance LLC raised its stake in Paychex by 6.1% during the 4th quarter. Founders Financial Alliance LLC now owns 2,210 shares of the business services provider's stock valued at $248,000 after buying an additional 128 shares during the last quarter. ICICI Prudential Asset Management Co Ltd raised its stake in Paychex by 4.6% during the 4th quarter. ICICI Prudential Asset Management Co Ltd now owns 5,775 shares of the business services provider's stock valued at $648,000 after buying an additional 253 shares during the last quarter. Finally, Sepio Capital LP raised its stake in Paychex by 15.7% during the 4th quarter. Sepio Capital LP now owns 22,604 shares of the business services provider's stock valued at $2,536,000 after buying an additional 3,062 shares during the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently commented on PAYX. JPMorgan Chase & Co. reduced their price objective on Paychex from $125.00 to $100.00 and set an "underweight" rating for the company in a research note on Thursday, March 26th. UBS Group reduced their price objective on Paychex from $98.00 to $94.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Morgan Stanley reduced their price objective on Paychex from $123.00 to $107.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Citigroup reduced their price objective on Paychex from $120.00 to $99.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Paychex in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $106.63.

Paychex Trading Down 1.8%

Shares of PAYX stock opened at $99.27 on Friday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $154.90. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. The firm has a market capitalization of $35.57 billion, a PE ratio of 21.87 and a beta of 0.84. The stock has a fifty day simple moving average of $93.75 and a two-hundred day simple moving average of $100.07.

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

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were paid a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date was Wednesday, May 13th. This is a boost from Paychex's previous quarterly dividend of $1.08. Paychex's dividend payout ratio (DPR) is currently 104.85%.

Paychex Company 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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