PFA Pension Forsikringsaktieselskab Takes Position in Paychex, Inc. $PAYX

Key Points

• PFA Pension Forsikringsaktieselskab established a new position in Paychex by acquiring 669,560 shares worth about $75.9 million, representing roughly 0.19% of the company.
• Paychex beat quarterly expectations with $1.71 EPS (vs. $1.67 est.) and $1.81B revenue (up 19.9% YoY), and its board authorized a $1.0 billion share buyback program (up to ~2.5% of shares).
• Analyst sentiment is muted—MarketBeat shows a consensus rating of "Reduce" with a $106.38 price target; the stock has a $33.33B market cap, a P/E of 20.49, and institutional ownership of about 83.5%.

PFA Pension Forsikringsaktieselskab acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 669,560 shares of the business services provider's stock, valued at approximately $75,921,000. PFA Pension Forsikringsaktieselskab owned 0.19% of Paychex at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in PAYX. Vanguard Group Inc. grew its holdings in Paychex by 12.1% during the fourth 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. Select Equity Group L.P. lifted its holdings in Paychex by 15.9% in the 2nd quarter. Select Equity Group L.P. now owns 4,051,413 shares of the business services provider's stock valued at $589,319,000 after acquiring an additional 557,101 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Paychex by 1.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,805,391 shares of the business services provider's stock valued at $355,650,000 after purchasing an additional 31,321 shares in the last quarter. Ameriprise Financial Inc. boosted its position in shares of Paychex by 0.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,280,715 shares of the business services provider's stock valued at $330,908,000 after purchasing an additional 17,869 shares in the last quarter. Finally, Envestnet Asset Management Inc. grew its stake in shares of Paychex by 1.5% in the 3rd quarter. Envestnet Asset Management Inc. now owns 1,979,330 shares of the business services provider's stock worth $250,900,000 after purchasing an additional 30,117 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Up 0.4%

Shares of Paychex stock opened at $93.02 on Friday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $161.24. The company has a market cap of $33.33 billion, a P/E ratio of 20.49 and a beta of 0.84. 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 stock has a 50-day moving average price of $92.27 and a 200 day moving average price of $104.50.

Paychex (NASDAQ:PAYX - Get Free Report) last released its 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 company had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.78 billion. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The business's revenue for the quarter was up 19.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.49 EPS. As a group, analysts expect that Paychex, Inc. will post 5.5 EPS for the current fiscal year.

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

Wall Street Analyst Weigh In

PAYX has been the subject of several recent research reports. Robert W. Baird cut their target price on shares of Paychex from $148.00 to $125.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. BMO Capital Markets increased their price objective on Paychex to $52.00 and gave the company an "outperform" rating in a research report on Thursday, March 26th. Jefferies Financial Group decreased their target price on Paychex from $110.00 to $105.00 and set a "hold" rating on the stock in a report on Thursday, March 26th. Guggenheim initiated coverage on Paychex in a research report on Thursday, March 19th. They set a "neutral" rating on the stock. Finally, TD Cowen reduced their target price on Paychex from $95.00 to $94.00 and set a "hold" rating for the company in a report on Tuesday, April 7th. One research 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 issued a Sell rating to the company. Based on data from MarketBeat.com, Paychex currently has a consensus rating of "Reduce" and a consensus price target of $106.38.

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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