Paychex, Inc. $PAYX Shares Acquired by CIBC Asset Management Inc

Key Points

• CIBC Asset Management increased its Paychex stake by 29.3% in the fourth quarter, buying 51,491 more shares and bringing its total holding to 227,021 shares worth about $25.5 million.
• Several other institutional investors also adjusted positions in Paychex, and overall institutions own 83.47% of the company’s stock.
• Paychex recently reported better-than-expected quarterly results with EPS of $1.71 and revenue of $1.81 billion, while also raising its quarterly dividend to $1.19 per share.

CIBC Asset Management Inc boosted its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 29.3% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 227,021 shares of the business services provider's stock after purchasing an additional 51,491 shares during the quarter. CIBC Asset Management Inc owned approximately 0.06% of Paychex worth $25,467,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. ABC Arbitrage SA boosted its position in Paychex by 61.4% during the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider's stock valued at $3,576,000 after purchasing an additional 10,726 shares during the period. GSA Capital Partners LLP acquired a new position in Paychex during the 3rd quarter valued at approximately $1,877,000. Alps Advisors Inc. raised its stake in Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider's stock valued at $30,494,000 after acquiring an additional 41,114 shares in the last quarter. Vanguard Group Inc. boosted its position 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 acquiring an additional 4,583,157 shares during the period. Finally, First Long Island Investors LLC boosted its position in Paychex by 23.9% during the 3rd quarter. First Long Island Investors LLC now owns 99,607 shares of the business services provider's stock worth $12,626,000 after acquiring an additional 19,185 shares during the period. Institutional investors and hedge funds own 83.47% of the company's stock.

Analysts Set New Price Targets

PAYX has been the subject of a number of analyst reports. BMO Capital Markets boosted their price target on Paychex to $52.00 and gave the stock an "outperform" rating in a research report on Thursday, March 26th. JPMorgan Chase & Co. reduced their price target on Paychex from $125.00 to $100.00 and set an "underweight" rating for the company in a research report on Thursday, March 26th. Jefferies Financial Group reduced their price target on Paychex from $110.00 to $105.00 and set a "hold" rating for the company in a research report on Thursday, March 26th. UBS Group reduced their price target on Paychex from $98.00 to $94.00 and set a "neutral" rating for the company in a research report on Monday, April 13th. Finally, Wells Fargo & Company reduced their price target on Paychex from $116.00 to $95.00 and set an "underweight" rating for the company in a research report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $106.38.

Paychex Trading Down 2.3%

Shares of NASDAQ PAYX opened at $98.45 on Thursday. The company has a market cap of $35.27 billion, a price-to-earnings ratio of 21.69 and a beta of 0.84. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $161.24. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.13. The business has a fifty day simple moving average of $92.85 and a 200-day simple moving average of $100.51.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.78 billion. Paychex had a return on equity of 48.52% and a net margin of 25.84%.Paychex's quarterly revenue was up 19.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.49 earnings per share. Sell-side analysts predict that Paychex, Inc. will post 5.5 EPS for the current year.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were given a dividend of $1.19 per share. 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. This represents a $4.76 annualized dividend and a yield of 4.8%. Paychex's payout ratio is presently 104.85%.

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.

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