Barclays PLC Has $137.15 Million Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Barclays PLC cut its Paychex stake by 34.1% in the fourth quarter, selling 633,610 shares and ending with 1,222,547 shares valued at about $137.1 million.
• Paychex reported solid quarterly results, with EPS of $1.71 topping estimates and revenue of $1.81 billion also beating expectations; revenue rose 19.9% year over year.
• The company boosted its dividend to $1.19 per share quarterly, implying a 4.7% annualized yield, while Wall Street’s overall view remains Hold with a consensus price target of $109.19.

Barclays PLC decreased its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 34.1% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,222,547 shares of the business services provider's stock after selling 633,610 shares during the quarter. Barclays PLC owned approximately 0.34% of Paychex worth $137,145,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Paychex by 12.1% during the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after buying an additional 4,583,157 shares in the last quarter. Capital International Investors lifted its stake in shares of Paychex by 59.1% in the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider's stock valued at $3,395,583,000 after purchasing an additional 11,243,295 shares during the period. State Street Corp lifted its stake in shares of Paychex by 1.6% in the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider's stock valued at $1,569,218,000 after purchasing an additional 216,045 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of Paychex by 2.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider's stock valued at $1,295,698,000 after purchasing an additional 263,152 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Paychex by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider's stock valued at $1,093,958,000 after purchasing an additional 78,760 shares during the period. Institutional investors and hedge funds own 83.47% of the company's stock.

Wall Street Analysts Forecast Growth

PAYX has been the topic of a number of analyst reports. Argus raised Paychex to a "strong-buy" rating in a research note on Friday, March 27th. Guggenheim initiated coverage on Paychex in a research note on Thursday, March 19th. They issued a "neutral" rating on the stock. Stephens cut their price target on Paychex from $125.00 to $105.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 26th. Wells Fargo & Company cut their price target on Paychex from $116.00 to $95.00 and set an "underweight" rating on the stock in a research note on Thursday, March 26th. Finally, Robert W. Baird cut their price target 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 equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $109.19.

Paychex Price Performance

PAYX opened at $100.90 on Tuesday. 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 $154.90. The company has a fifty day simple moving average of $94.13 and a 200 day simple moving average of $99.93. The stock has a market cap of $36.15 billion, a P/E ratio of 22.22 and a beta of 0.84.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 earnings per share for the quarter, beating 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 business had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the previous year, the business posted $1.49 EPS. Paychex's revenue for the quarter was up 19.9% on a year-over-year basis. On average, research analysts expect that Paychex, Inc. will post 5.5 EPS for the current year.

Paychex Increases Dividend

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

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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