Paychex, Inc. $PAYX Position Lessened by Mitsubishi UFJ Trust & Banking Corp

Key Points

• Mitsubishi UFJ Trust & Banking Corp reduced its stake in Paychex by 8.6%, selling 15,835 shares and leaving it with 169,270 shares valued at about $18.99 million at quarter-end.
• Paychex beat quarterly expectations with $1.71 EPS vs. $1.67 expected and reported revenue of $1.81 billion, a 19.9% year-over-year increase.
• The company’s Board authorized a $1.00 billion share repurchase program, permitting repurchases of up to 2.5% of outstanding shares.

Mitsubishi UFJ Trust & Banking Corp reduced its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 8.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 169,270 shares of the business services provider's stock after selling 15,835 shares during the quarter. Mitsubishi UFJ Trust & Banking Corp's holdings in Paychex were worth $18,989,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the stock. Vermillion & White Wealth Management Group LLC acquired a new position in shares of Paychex during the third quarter valued at $27,000. Stance Capital LLC bought a new stake in Paychex in the 3rd quarter valued at about $31,000. MMA Asset Management LLC bought a new stake in Paychex in the 3rd quarter valued at about $32,000. Board of the Pension Protection Fund acquired a new position in Paychex during the 4th quarter valued at about $34,000. Finally, Westfuller Advisors LLC bought a new position in Paychex in the 3rd quarter worth about $35,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $92.63 on Friday. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $161.24. The stock has a market cap of $33.19 billion, a price-to-earnings ratio of 20.40 and a beta of 0.88. The stock's 50 day moving average price is $92.27 and its 200 day moving average price is $104.66. 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 - 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, beating 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 firm had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same period last year, the company posted $1.49 EPS. The firm's quarterly revenue was up 19.9% on a year-over-year basis. Equities research analysts anticipate that Paychex, Inc. will post 5.5 earnings per share for the current fiscal year.

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

Wall Street Analyst Weigh In

PAYX has been the topic of several analyst reports. Cantor Fitzgerald upgraded shares of Paychex to a "strong sell" rating in a research note on Tuesday, January 27th. JPMorgan Chase & Co. lowered their target price on Paychex from $125.00 to $100.00 and set an "underweight" rating on the stock in a research report on Thursday, March 26th. Argus upgraded Paychex to a "strong-buy" rating in a research report on Friday, March 27th. Robert W. Baird decreased their price target on Paychex from $148.00 to $125.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. Finally, BMO Capital Markets raised their price target on Paychex to $52.00 and gave the company an "outperform" rating in a report on Thursday, March 26th. One 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 assigned a Sell rating to the company's stock. According to MarketBeat.com, Paychex currently has an average rating of "Reduce" and an average target price of $106.38.

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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