Paychex, Inc. (NASDAQ:PAYX) is Parthenon LLC’s 3rd Largest Position

Parthenon LLC decreased its holdings in Paychex, Inc. (NASDAQ:PAYX) by 0.1% during the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 262,022 shares of the business services provider’s stock after selling 260 shares during the period. Paychex makes up about 4.3% of Parthenon LLC’s investment portfolio, making the stock its 3rd largest position. Parthenon LLC’s holdings in Paychex were worth $31,209,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Outlook Wealth Advisors LLC acquired a new stake in shares of Paychex in the fourth quarter valued at about $214,000. Cerity Partners LLC lifted its position in shares of Paychex by 80.2% during the fourth quarter. Cerity Partners LLC now owns 343,269 shares of the business services provider’s stock worth $40,887,000 after purchasing an additional 152,818 shares in the last quarter. BKM Wealth Management LLC acquired a new position in shares of Paychex during the fourth quarter worth $1,229,000. Sequoia Financial Advisors LLC boosted its stake in shares of Paychex by 366.5% in the fourth quarter. Sequoia Financial Advisors LLC now owns 20,863 shares of the business services provider’s stock valued at $2,485,000 after purchasing an additional 16,391 shares during the period. Finally, Nordea Investment Management AB grew its holdings in Paychex by 218.8% during the 4th quarter. Nordea Investment Management AB now owns 680,257 shares of the business services provider’s stock valued at $80,794,000 after purchasing an additional 466,890 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Stock Performance

Shares of NASDAQ:PAYX traded down $2.00 during trading on Tuesday, reaching $118.81. 1,687,331 shares of the company’s stock traded hands, compared to its average volume of 1,816,551. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 1.24. The company has a 50 day moving average of $121.77 and a 200-day moving average of $120.41. Paychex, Inc. has a 12 month low of $104.09 and a 12 month high of $129.70. The stock has a market capitalization of $42.77 billion, a P/E ratio of 25.88, a price-to-earnings-growth ratio of 3.38 and a beta of 0.93.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Tuesday, April 2nd. The business services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.37 by $0.01. Paychex had a return on equity of 46.14% and a net margin of 31.86%. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business earned $1.29 EPS. The firm’s revenue was up 4.2% on a year-over-year basis. On average, equities analysts expect that Paychex, Inc. will post 4.71 EPS for the current year.

Paychex announced that its Board of Directors has authorized a stock repurchase plan on Friday, January 19th that allows the company to buyback $400.00 million in outstanding shares. This buyback authorization allows the business services provider to buy up to 0.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Bank of America boosted their price objective on shares of Paychex from $108.00 to $111.00 and gave the stock an “underperform” rating in a report on Wednesday, April 3rd. Wedbush reaffirmed a “neutral” rating and issued a $115.00 target price on shares of Paychex in a research report on Wednesday, April 3rd. Evercore ISI reiterated an “in-line” rating and set a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. Royal Bank of Canada restated a “sector perform” rating and issued a $130.00 price target on shares of Paychex in a research note on Wednesday, April 3rd. Finally, TD Cowen reduced their price objective 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. Two equities research analysts have rated the stock with a sell rating and ten have assigned a hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $123.00.

About Paychex

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.