Paychex, Inc. $PAYX Stock Holdings Trimmed by Sequoia Financial Advisors LLC

Key Points

• Sequoia Financial Advisors cut its Paychex stake by 72.9% in the fourth quarter, selling 48,321 shares and leaving it with 17,947 shares worth about $2.0 million.
• Paychex reported better-than-expected quarterly results, with earnings per share of $1.71 versus $1.67 expected and revenue of $1.81 billion, up 19.9% year over year.
• The company boosted its quarterly dividend to $1.19 per share and also has a $1.0 billion share repurchase plan in place, while analysts currently have a consensus rating of “Reduce” on the stock.

Sequoia Financial Advisors LLC lowered its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 72.9% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,947 shares of the business services provider's stock after selling 48,321 shares during the period. Sequoia Financial Advisors LLC's holdings in Paychex were worth $2,013,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of PAYX. Vermillion & White Wealth Management Group LLC bought a new stake in shares of Paychex in the 3rd quarter worth $27,000. Cornerstone Planning Group LLC raised its stake in shares of Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock worth $30,000 after buying an additional 268 shares in the last quarter. Stance Capital LLC bought a new stake in shares of Paychex in the 3rd quarter worth $31,000. MMA Asset Management LLC bought a new stake in shares of Paychex in the 3rd quarter worth $32,000. Finally, Board of the Pension Protection Fund bought a new stake in shares of Paychex in the 4th quarter worth $34,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Performance

Shares of PAYX stock opened at $93.93 on Monday. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $161.24. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. The company has a market capitalization of $33.65 billion, a price-to-earnings ratio of 20.69 and a beta of 0.84. The stock's fifty day simple moving average is $92.50 and its 200-day simple moving average is $103.62.

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 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 business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.78 billion. During the same quarter in the previous year, the company posted $1.49 earnings per share. Paychex's revenue for the quarter was up 19.9% compared to the same quarter last year. On average, sell-side analysts predict that Paychex, Inc. will post 5.5 earnings per share for the current fiscal year.

Paychex declared that its Board of Directors has approved a share repurchase plan on Friday, January 16th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th will be issued a dividend of $1.19 per share. This is a positive change from Paychex's previous quarterly dividend of $1.08. This represents a $4.76 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Wednesday, May 13th. Paychex's dividend payout ratio is presently 95.15%.

Analysts Set New Price Targets

A number of analysts have recently commented on PAYX shares. Weiss Ratings reissued a "hold (c-)" rating on shares of Paychex in a research note on Friday, April 24th. UBS Group dropped their price objective on Paychex from $98.00 to $94.00 and set a "neutral" rating on the stock in a research note on Monday, April 13th. Robert W. Baird decreased their target price on Paychex from $148.00 to $125.00 and set a "neutral" rating on the stock in a report on Thursday, March 26th. Stephens decreased their target price on Paychex from $125.00 to $105.00 and set an "equal weight" rating on the stock in a report on Thursday, March 26th. Finally, TD Cowen decreased their target price on Paychex from $95.00 to $94.00 and set a "hold" rating on the stock in a report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus 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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