Applied Capital LLC FL Makes New $1.01 Million Investment in Paychex, Inc. $PAYX

Applied Capital LLC FL acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 4th quarter, according to its most recent 13F filing with the SEC. The fund acquired 9,000 shares of the business services provider’s stock, valued at approximately $1,010,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Heartwood Wealth Advisors LLC acquired a new stake in shares of Paychex during the 3rd quarter worth about $25,000. Vermillion & White Wealth Management Group LLC acquired a new position in shares of Paychex in the third quarter valued at approximately $27,000. Stance Capital LLC acquired a new position in shares of Paychex in the third quarter valued at approximately $31,000. MMA Asset Management LLC purchased a new position in shares of Paychex during the third quarter valued at approximately $32,000. Finally, Board of the Pension Protection Fund purchased a new position in shares of Paychex during the fourth quarter valued at approximately $34,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Analyst Ratings Changes

PAYX has been the subject of several recent analyst reports. Morgan Stanley lowered their target price on shares of Paychex from $123.00 to $107.00 and set an “equal weight” rating for the company in a research note on Thursday, March 26th. Guggenheim started coverage on Paychex in a research note on Thursday, March 19th. They set a “neutral” rating on the stock. BMO Capital Markets lifted their price objective on Paychex to $52.00 and gave the company an “outperform” rating in a research report on Thursday, March 26th. Citigroup dropped their target price on Paychex from $120.00 to $99.00 and set a “neutral” rating for the company in a research note on Thursday, March 26th. Finally, Argus upgraded Paychex to a “strong-buy” rating in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $108.81.

Paychex Price Performance

PAYX stock opened at $90.91 on Thursday. The company has a market cap of $32.57 billion, a PE ratio of 20.02 and a beta of 0.88. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. The stock has a 50-day moving average price of $95.66 and a two-hundred day moving average price of $109.90. Paychex, Inc. has a 12-month low of $86.89 and a 12-month high of $161.24.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.04. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. During the same quarter in the prior year, the company earned $1.49 EPS. The company’s revenue was up 19.9% on a year-over-year basis. As a group, research analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders 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 dividend yield of 4.8%. The ex-dividend date was Wednesday, January 28th. Paychex’s payout ratio is currently 95.15%.

Paychex announced that its board has initiated a share repurchase 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 reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

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.