Wealth Enhancement Advisory Services LLC Boosts Holdings in Paychex, Inc. $PAYX

Key Points

• Wealth Enhancement Advisory Services LLC increased its Paychex stake by 67.0% in Q4 to 202,446 shares, valued at about $22.52 million.
• Paychex authorized a $1.00 billion share buyback (up to 2.5% of outstanding stock) and paid a quarterly dividend of $1.08 (annualized yield 4.8%) with a payout ratio near 98%.
• Analyst sentiment has weakened — the consensus rating is "Reduce" with an average price target of $121.38 after several firms cut targets, and the stock is trading below its 50‑ and 200‑day averages.

Wealth Enhancement Advisory Services LLC grew its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 67.0% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 202,446 shares of the business services provider's stock after purchasing an additional 81,186 shares during the quarter. Wealth Enhancement Advisory Services LLC owned about 0.06% of Paychex worth $22,523,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Heartwood Wealth Advisors LLC purchased a new position in Paychex during the 3rd quarter worth $25,000. Vermillion & White Wealth Management Group LLC purchased a new stake in Paychex in the third quarter valued at about $27,000. Stance Capital LLC acquired a new stake in Paychex in the third quarter worth about $31,000. MMA Asset Management LLC purchased a new stake in shares of Paychex during the third quarter worth about $32,000. Finally, Westfuller Advisors LLC acquired a new position in shares of Paychex during the third quarter valued at about $35,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Stock Down 3.1%

Shares of PAYX opened at $90.61 on Wednesday. The stock has a 50 day moving average price of $97.72 and a 200 day moving average price of $111.51. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The stock has a market capitalization of $32.53 billion, a price-to-earnings ratio of 20.55 and a beta of 0.91. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors 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 dividend payout ratio is currently 97.96%.

Paychex declared that its Board of Directors has authorized a stock buyback program on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PAYX. Argus lowered their target price on shares of Paychex from $150.00 to $130.00 and set a "buy" rating for the company in a research note on Friday, January 2nd. Wells Fargo & Company lowered their price objective on shares of Paychex from $128.00 to $116.00 and set an "underweight" rating for the company in a research note on Tuesday, December 9th. BMO Capital Markets dropped their price objective on shares of Paychex from $121.00 to $103.00 and set a "market perform" rating on the stock in a report on Friday, March 13th. Jefferies Financial Group set a $110.00 target price on Paychex in a research report on Friday, December 19th. Finally, Citigroup decreased their target price on Paychex from $139.00 to $120.00 and set a "neutral" rating for the company in a report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Paychex currently has an average rating of "Reduce" and an average price target of $121.38.

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.

Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX - Free Report).

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.