Titan Investment Management LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Titan Investment Management LLC opened a new position in Paychex during the fourth quarter, buying 14,723 shares valued at about $1.65 million. The stake represents roughly 1.5% of Titan’s holdings.
• Paychex reported strong quarterly results, with EPS of $1.71 beating estimates and revenue of $1.81 billion topping forecasts. Revenue rose 19.9% year over year, and analysts now expect full-year EPS of 5.49.
• The company also raised its quarterly dividend to $1.19 per share, or $4.76 annualized, for a yield of about 4.8%. However, analyst sentiment remains cautious overall, with a consensus rating of Hold and an average price target of $108.19.

Titan Investment Management LLC acquired a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the fourth quarter, according to its most recent filing with the SEC. The firm acquired 14,723 shares of the business services provider's stock, valued at approximately $1,652,000. Paychex comprises approximately 1.5% of Titan Investment Management LLC's holdings, making the stock its 27th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. 44 Wealth Management LLC grew its position in 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 during the last quarter. Smartleaf Asset Management LLC increased its stake in Paychex by 3.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock valued at $381,000 after purchasing an additional 89 shares in the last quarter. JPL Wealth Management LLC raised its holdings in Paychex by 0.3% in the third quarter. JPL Wealth Management LLC now owns 27,686 shares of the business services provider's stock worth $3,509,000 after buying an additional 92 shares during the last quarter. Greenleaf Trust raised its holdings in Paychex by 1.7% in the fourth quarter. Greenleaf Trust now owns 5,834 shares of the business services provider's stock worth $654,000 after buying an additional 95 shares during the last quarter. Finally, Bollard Group LLC lifted its stake in shares of Paychex by 0.6% in the third quarter. Bollard Group LLC now owns 16,496 shares of the business services provider's stock worth $2,091,000 after buying an additional 100 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Stock Up 0.7%

NASDAQ PAYX opened at $98.24 on Friday. The stock has a 50 day moving average price of $94.55 and a 200-day moving average price of $99.65. Paychex, Inc. has a one year low of $85.45 and a one year high of $152.57. 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 has a market capitalization of $35.20 billion, a P/E ratio of 21.64 and a beta of 0.84.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.67 by $0.04. The firm had revenue of $1.81 billion during 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 was up 19.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.49 earnings per share. As a group, equities analysts predict that Paychex, Inc. will post 5.49 EPS for the current fiscal year.

Paychex Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were paid a $1.19 dividend. The ex-dividend date was Wednesday, May 13th. This represents a $4.76 dividend on an annualized basis and a yield of 4.8%. This is an increase from Paychex's previous quarterly dividend of $1.08. Paychex's payout ratio is currently 104.85%.

Analysts Set New Price Targets

PAYX has been the topic of several recent research reports. Jefferies Financial Group decreased their price target on shares of Paychex from $110.00 to $105.00 and set a "hold" rating on the stock in a research report on Thursday, March 26th. Robert W. Baird cut their price objective on shares of Paychex from $148.00 to $125.00 and set a "neutral" rating for the company in a research report on Thursday, March 26th. Stephens reduced their price objective on Paychex from $125.00 to $105.00 and set an "equal weight" rating for the company in a research note on Thursday, March 26th. Citigroup raised Paychex from a "neutral" rating to a "buy" rating and raised their target price for the stock from $99.00 to $140.00 in a report on Monday. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Paychex in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $108.19.

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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