Merit Financial Group LLC Raises Stake in Paychex, Inc. (NASDAQ:PAYX)

Merit Financial Group LLC grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 53.9% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 6,142 shares of the business services provider’s stock after acquiring an additional 2,152 shares during the quarter. Merit Financial Group LLC’s holdings in Paychex were worth $732,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in PAYX. OFI Invest Asset Management purchased a new stake in Paychex during the 3rd quarter valued at $26,000. Carmel Capital Partners LLC bought a new stake in shares of Paychex in the third quarter worth about $28,000. Larson Financial Group LLC raised its position in Paychex by 91.5% during the 3rd quarter. Larson Financial Group LLC now owns 272 shares of the business services provider’s stock valued at $31,000 after purchasing an additional 130 shares during the last quarter. Fortis Group Advisors LLC purchased a new stake in Paychex in the 3rd quarter worth approximately $34,000. Finally, Gradient Investments LLC increased its stake in shares of Paychex by 39.8% during the third quarter. Gradient Investments LLC now owns 351 shares of the business services provider’s stock valued at $40,000 after buying an additional 100 shares during the period. 83.47% of the stock is owned by institutional investors.

Paychex Stock Up 0.4 %

Shares of PAYX stock opened at $120.63 on Tuesday. The company has a 50 day simple moving average of $121.42 and a two-hundred day simple moving average of $120.44. The stock has a market cap of $43.42 billion, a P/E ratio of 26.28, a P/E/G ratio of 3.39 and a beta of 0.93. Paychex, Inc. has a 12 month low of $104.09 and a 12 month high of $129.70. 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 (NASDAQ:PAYX) last issued its quarterly earnings results 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 business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the prior year, the business posted $1.29 earnings per share. The business’s quarterly revenue was up 4.2% on a year-over-year basis. On average, research analysts expect that Paychex, Inc. will post 4.71 earnings per share for the current year.

Paychex declared that its board has approved a share buyback program on Friday, January 19th that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 0.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Shareholders of record on Friday, May 10th will be paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 3.25%. The ex-dividend date is Thursday, May 9th. This is a positive change from Paychex’s previous quarterly dividend of $0.89. Paychex’s dividend payout ratio is presently 77.56%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on PAYX shares. TD Cowen reduced their target price on shares of Paychex from $122.00 to $121.00 and set a “hold” rating on the stock 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 report on Tuesday, March 26th. Bank of America upped their price target on Paychex from $108.00 to $111.00 and gave the stock an “underperform” rating in a research note on Wednesday, April 3rd. Royal Bank of Canada reiterated a “sector perform” rating and set a $130.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Wedbush reissued a “neutral” rating and issued a $115.00 target price 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 issued a hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $123.00.

Paychex Company Profile

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.