Paychex, Inc. (NASDAQ:PAYX) Shares Sold by Dillon & Associates Inc.

Dillon & Associates Inc. trimmed its holdings in Paychex, Inc. (NASDAQ:PAYXFree Report) by 5.8% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 56,368 shares of the business services provider’s stock after selling 3,481 shares during the period. Paychex accounts for about 1.2% of Dillon & Associates Inc.’s investment portfolio, making the stock its 26th largest position. Dillon & Associates Inc.’s holdings in Paychex were worth $6,708,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Paychex by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 29,931,007 shares of the business services provider’s stock valued at $3,451,943,000 after purchasing an additional 170,453 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Paychex by 2.7% in the third quarter. Charles Schwab Investment Management Inc. now owns 6,797,671 shares of the business services provider’s stock valued at $783,975,000 after buying an additional 178,316 shares during the last quarter. Northern Trust Corp lifted its stake in shares of Paychex by 5.8% during the third quarter. Northern Trust Corp now owns 4,481,555 shares of the business services provider’s stock valued at $516,858,000 after buying an additional 246,791 shares during the period. Morgan Stanley boosted its position in Paychex by 5.3% during the third quarter. Morgan Stanley now owns 3,598,560 shares of the business services provider’s stock worth $415,022,000 after acquiring an additional 182,648 shares during the last quarter. Finally, Envestnet Asset Management Inc. grew its stake in Paychex by 26.7% in the 3rd quarter. Envestnet Asset Management Inc. now owns 2,631,066 shares of the business services provider’s stock worth $303,441,000 after acquiring an additional 554,968 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Up 0.4 %

Shares of PAYX traded up $0.46 during midday trading on Friday, reaching $125.65. 2,414,681 shares of the company were exchanged, compared to its average volume of 1,573,020. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.21. Paychex, Inc. has a 1-year low of $104.09 and a 1-year high of $129.70. The company has a market cap of $45.23 billion, a price-to-earnings ratio of 27.37, a P/E/G ratio of 3.53 and a beta of 0.93. The stock has a 50-day moving average price of $121.73 and a 200-day moving average price of $120.97.

Paychex (NASDAQ:PAYXGet Free Report) last released its quarterly earnings results on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.37 by $0.01. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Paychex had a return on equity of 46.14% and a net margin of 31.86%. Paychex’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.29 EPS. Research analysts expect that Paychex, Inc. will post 4.71 earnings per share for the current year.

Paychex declared that its Board of Directors has approved a share repurchase plan on Friday, January 19th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the business services provider to reacquire up to 0.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

Paychex Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Investors of record on Friday, May 10th will be paid a dividend of $0.98 per share. This is an increase from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, May 9th. This represents a $3.92 annualized dividend and a yield of 3.12%. Paychex’s payout ratio is 85.40%.

Wall Street Analyst Weigh In

PAYX has been the subject of a number of recent analyst reports. Bank of America lifted their price objective on Paychex from $108.00 to $111.00 and gave the company an “underperform” rating in a research report on Wednesday, April 3rd. Wedbush reiterated a “neutral” rating and set a $115.00 price objective on shares of Paychex in a report on Wednesday, April 3rd. Evercore ISI restated an “in-line” rating and issued a $118.00 target price on shares of Paychex in a report on Tuesday, March 26th. TD Cowen cut their price target on shares of Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada reissued a “sector perform” rating and set a $130.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $123.00.

Get Our Latest Research Report on PAYX

Paychex Company Profile

(Free Report)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

See Also

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Institutional Ownership by Quarter for Paychex (NASDAQ:PAYX)

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