TABR Capital Management LLC Acquires Shares of 53,200 Paychex, Inc. $PAYX

Key Points

• TABR Capital Management LLC purchased 53,200 shares of Paychex (NASDAQ:PAYX) in Q4, worth about $5.97 million, making the holding ~1.6% of TABR’s portfolio and its 16th-largest position.
• Analysts have been trimming price targets and sentiment — Paychex carries a MarketBeat consensus rating of Reduce with a consensus target price of $106.38.
• Paychex recently beat quarterly estimates (EPS $1.71 vs. $1.67), reported revenue up 19.9% year-over-year, and its board authorized a $1.00 billion share buyback (about 2.5% of shares outstanding).

TABR Capital Management LLC purchased a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 53,200 shares of the business services provider's stock, valued at approximately $5,968,000. Paychex accounts for about 1.6% of TABR Capital Management LLC's holdings, making the stock its 16th biggest holding.

Other hedge funds have also modified their holdings of the company. Vermillion & White Wealth Management Group LLC acquired a new stake in Paychex in the third quarter valued at $27,000. Stance Capital LLC acquired a new position in shares of Paychex during the 3rd quarter worth $31,000. MMA Asset Management LLC acquired a new position in shares of Paychex during the 3rd quarter worth $32,000. Board of the Pension Protection Fund purchased a new position in shares of Paychex in the 4th quarter valued at about $34,000. Finally, Westfuller Advisors LLC purchased a new position in shares of Paychex in the 3rd quarter valued at about $35,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms recently commented on PAYX. Guggenheim started coverage on shares of Paychex in a report on Thursday, March 19th. They set a "neutral" rating on the stock. Royal Bank Of Canada dropped their target price on shares of Paychex from $125.00 to $102.00 and set a "sector perform" rating for the company in a report on Thursday, March 19th. TD Cowen decreased their price target on Paychex from $95.00 to $94.00 and set a "hold" rating on the stock in a research note on Tuesday, April 7th. Morgan Stanley lowered their price target on Paychex from $123.00 to $107.00 and set an "equal weight" rating on the stock in a report on Thursday, March 26th. Finally, Jefferies Financial Group dropped their price objective on Paychex from $110.00 to $105.00 and set a "hold" rating for the company in a research note on Thursday, March 26th. One equities 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 issued a Sell rating to the company's stock. Based on data from MarketBeat, Paychex has a consensus rating of "Reduce" and a consensus target price of $106.38.

Paychex Stock Performance

NASDAQ:PAYX opened at $93.68 on Wednesday. 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 firm has a 50-day moving average price of $92.55 and a two-hundred day moving average price of $106.05. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $161.24. The company has a market capitalization of $33.56 billion, a P/E ratio of 20.63 and a beta of 0.88.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $1.78 billion. During the same quarter in the prior year, the firm earned $1.49 earnings per share. The company's revenue for the quarter was up 19.9% compared to the same quarter last year. As a group, research analysts expect that Paychex, Inc. will post 5.5 earnings per share for the current fiscal year.

Paychex declared that its board has authorized a stock repurchase program on Friday, January 16th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

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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