CIBC Bancorp USA Inc. Buys New Stake in Paychex, Inc. $PAYX

CIBC Bancorp USA Inc. bought a new position in Paychex, Inc. (NASDAQ:PAYX) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 58,428 shares of the business services provider’s stock, valued at approximately $7,406,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Heartwood Wealth Advisors LLC bought a new stake in Paychex in the third quarter valued at $25,000. Stance Capital LLC acquired a new position in Paychex during the third quarter worth $31,000. MMA Asset Management LLC bought a new position in shares of Paychex during the third quarter valued at $32,000. Westfuller Advisors LLC acquired a new stake in shares of Paychex in the 3rd quarter valued at $35,000. Finally, Caitlin John LLC acquired a new stake in shares of Paychex in the 3rd quarter valued at $36,000. Institutional investors own 83.47% of the company’s stock.

Paychex Price Performance

Paychex stock opened at $92.55 on Friday. The stock’s 50 day moving average is $98.48 and its 200 day moving average is $112.47. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24. The firm has a market cap of $33.22 billion, a P/E ratio of 20.99 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the company earned $1.14 EPS. The company’s revenue for the quarter was up 18.3% on a year-over-year basis. As a group, research analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex announced that its Board of Directors has approved a share buyback plan on Friday, January 16th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Paychex Dividend Announcement

The company also recently announced 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 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Royal Bank Of Canada reduced 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 report on Thursday. Stephens decreased their price objective on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. Argus dropped their price objective on shares of Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a report on Friday, January 2nd. Finally, Jefferies Financial Group set a $110.00 target price on shares of Paychex in a research note on Friday, December 19th. One investment analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, Paychex has an average rating of “Reduce” and a consensus target price of $121.38.

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.