Paychex, Inc. $PAYX Stock Holdings Reduced by Mcdonald Capital Investors Inc. CA

Key Points

• Mcdonald Capital Investors trimmed its Paychex stake by 1.8% in Q4 to 842,861 shares—still owning about 0.23% of Paychex worth roughly $94.6 million and making PAYX its 7th-largest holding.
• Paychex beat the quarter on EPS ($1.71 vs. $1.67) and revenue ($1.81B vs. $1.78B) with revenue up ~19.9% year-over-year, and the board authorized a $1.00 billion share repurchase plan (up to 2.5% of shares).
• Wall Street sentiment has cooled with several firms cutting price targets and MarketBeat showing a consensus rating of "Reduce" and a $106.38 average price target, while institutional investors hold about 83.5% of the stock.

Mcdonald Capital Investors Inc. CA lessened its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 1.8% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 842,861 shares of the business services provider's stock after selling 15,038 shares during the quarter. Paychex comprises about 5.8% of Mcdonald Capital Investors Inc. CA's holdings, making the stock its 7th biggest holding. Mcdonald Capital Investors Inc. CA owned 0.23% of Paychex worth $94,552,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently bought and sold shares of PAYX. Vermillion & White Wealth Management Group LLC acquired a new stake in shares of Paychex during the third quarter worth about $27,000. Stance Capital LLC acquired a new stake in shares of Paychex in the 3rd quarter valued at about $31,000. MMA Asset Management LLC acquired a new position in Paychex during the third quarter worth approximately $32,000. Board of the Pension Protection Fund purchased a new stake in Paychex in the fourth quarter valued at approximately $34,000. Finally, Westfuller Advisors LLC acquired a new stake in shares of Paychex in the third quarter valued at approximately $35,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on PAYX shares. Cantor Fitzgerald upgraded shares of Paychex to a "strong sell" rating in a research report on Tuesday, January 27th. Stephens reduced their price objective on shares of Paychex from $125.00 to $105.00 and set an "equal weight" rating for the company in a research report on Thursday, March 26th. Royal Bank Of Canada dropped their target price on Paychex from $125.00 to $102.00 and set a "sector perform" rating on the stock in a research report on Thursday, March 19th. Citigroup cut their target price 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, Morgan Stanley decreased their price target on Paychex from $123.00 to $107.00 and set an "equal weight" rating on the stock in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $106.38.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $94.05 on Thursday. The firm has a market capitalization of $33.70 billion, a price-to-earnings ratio of 20.72 and a beta of 0.88. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.26 and a quick ratio of 1.26. The business's 50 day simple moving average is $92.26 and its 200-day simple moving average is $104.75. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $161.24.

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

Paychex declared that its Board of Directors has authorized a stock repurchase plan on Friday, January 16th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its stock is undervalued.

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.

Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.