Sumitomo Mitsui Trust Group Inc. Boosts Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Sumitomo Mitsui Trust Group increased its Paychex stake by 2.6% in Q4 to 906,403 shares (an additional 23,218 shares), representing about 0.25% of the company and worth roughly $101.68 million.
• Paychex's board authorized a $1.00 billion share buyback (up to 2.5% of shares) and the company pays a quarterly dividend that annualizes to $4.32 per share for a yield of about 4.8% (payout ratio ~95%).
• In the latest quarter Paychex reported $1.71 EPS vs. $1.67 expected and revenue of $1.81 billion (up 19.9% YoY); the stock has a market cap near $32 billion, a P/E of ~19.7, and a mixed analyst consensus (average rating "Reduce", target ~$106.38).

Sumitomo Mitsui Trust Group Inc. grew its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 2.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 906,403 shares of the business services provider's stock after purchasing an additional 23,218 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.25% of Paychex worth $101,680,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Somerset Trust Co increased its holdings in shares of Paychex by 0.3% during the 3rd quarter. Somerset Trust Co now owns 32,964 shares of the business services provider's stock valued at $4,179,000 after purchasing an additional 84 shares in the last quarter. Suncoast Equity Management increased its holdings in shares of Paychex by 0.6% during the 3rd quarter. Suncoast Equity Management now owns 14,055 shares of the business services provider's stock valued at $1,782,000 after purchasing an additional 85 shares in the last quarter. 44 Wealth Management LLC increased its holdings in shares of Paychex by 2.7% during the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock valued at $479,000 after purchasing an additional 86 shares in the last quarter. Simon Quick Advisors LLC grew its stake in Paychex by 1.5% in the 3rd quarter. Simon Quick Advisors LLC now owns 6,126 shares of the business services provider's stock valued at $777,000 after acquiring an additional 89 shares during the period. Finally, Smartleaf Asset Management LLC grew its stake in Paychex by 3.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock valued at $381,000 after acquiring an additional 89 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Price Performance

Paychex stock opened at $89.32 on Tuesday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $161.24. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. The company's fifty day moving average price is $93.34 and its 200 day moving average price is $107.49. The stock has a market capitalization of $32.00 billion, a P/E ratio of 19.67 and a beta of 0.88.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.04. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The company had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the previous year, the company posted $1.49 EPS. The firm's quarterly revenue was up 19.9% on a year-over-year basis. As a group, equities research analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

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

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex's payout ratio is 95.15%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. UBS Group dropped their price target on shares of Paychex from $98.00 to $94.00 and set a "neutral" rating on the stock in a research note on Monday. Weiss Ratings reissued a "hold (c)" rating on shares of Paychex in a research note on Monday, December 29th. BMO Capital Markets lifted their price target on shares of Paychex to $52.00 and gave the company an "outperform" rating in a research note on Thursday, March 26th. Argus raised shares of Paychex to a "strong-buy" rating in a research note on Friday, March 27th. Finally, Royal Bank Of Canada dropped their price target on shares of Paychex from $125.00 to $102.00 and set a "sector perform" rating on the stock in a research note on Thursday, March 19th. 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 stock. According to data from MarketBeat, Paychex presently has an average rating of "Reduce" and a consensus target price of $106.38.

Paychex 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.

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.