Hamlin Capital Management LLC Has $152.46 Million Stock Position in Paychex, Inc. $PAYX

Hamlin Capital Management LLC boosted its holdings in Paychex, Inc. (NASDAQ:PAYX) by 5.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,359,025 shares of the business services provider’s stock after buying an additional 68,594 shares during the period. Paychex makes up about 3.7% of Hamlin Capital Management LLC’s investment portfolio, making the stock its 16th largest position. Hamlin Capital Management LLC owned about 0.38% of Paychex worth $152,455,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of PAYX. Quantum Portfolio Management LLC grew its stake in shares of Paychex by 3.1% in the second quarter. Quantum Portfolio Management LLC now owns 2,464 shares of the business services provider’s stock worth $358,000 after acquiring an additional 75 shares during the last quarter. FAS Wealth Partners Inc. increased its position in Paychex by 3.3% during the second quarter. FAS Wealth Partners Inc. now owns 2,597 shares of the business services provider’s stock worth $378,000 after acquiring an additional 83 shares during the period. Somerset Trust Co raised its stake in Paychex by 0.3% during the 3rd quarter. Somerset Trust Co now owns 32,964 shares of the business services provider’s stock valued at $4,179,000 after purchasing an additional 84 shares during the last quarter. Suncoast Equity Management boosted its holdings in Paychex by 0.6% in the 3rd quarter. Suncoast Equity Management now owns 14,055 shares of the business services provider’s stock valued at $1,782,000 after purchasing an additional 85 shares during the period. Finally, 44 Wealth Management LLC boosted its holdings in Paychex by 2.7% in 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 period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Price Performance

NASDAQ:PAYX opened at $92.55 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The firm has a market cap of $33.22 billion, a PE ratio of 20.99 and a beta of 0.91. Paychex, Inc. has a 12 month low of $86.89 and a 12 month high of $161.24. The company’s 50-day moving average price is $98.48 and its two-hundred day moving average price is $112.30.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same quarter last year, the business posted $1.14 earnings per share. The company’s revenue was up 18.3% on a year-over-year basis. On average, equities analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a dividend of $1.08 per share. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a yield of 4.7%. Paychex’s dividend payout ratio is 97.96%.

Paychex declared that its Board of Directors has initiated a stock buyback plan on Friday, January 16th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on PAYX shares. Wells Fargo & Company dropped their price objective on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. BMO Capital Markets reduced their target price on shares of Paychex from $121.00 to $103.00 and set a “market perform” rating for the company in a research note on Friday, March 13th. Royal Bank Of Canada decreased their target price on Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research report on Thursday. Wolfe Research lowered their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a research note on Wednesday, December 10th. Finally, Stephens cut their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $121.38.

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.