WASHINGTON TRUST Co Cuts Position in Paychex, Inc. (NASDAQ:PAYX)

WASHINGTON TRUST Co reduced its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 1.7% in the fourth quarter, Holdings Channel reports. The firm owned 14,982 shares of the business services provider’s stock after selling 263 shares during the period. WASHINGTON TRUST Co’s holdings in Paychex were worth $1,784,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Fairfield Bush & CO. bought a new stake in shares of Paychex during the 1st quarter valued at $269,000. Vontobel Holding Ltd. raised its position in shares of Paychex by 35.7% in the first quarter. Vontobel Holding Ltd. now owns 5,455 shares of the business services provider’s stock valued at $747,000 after buying an additional 1,436 shares during the last quarter. Sei Investments Co. boosted its stake in Paychex by 118.3% during the first quarter. Sei Investments Co. now owns 91,985 shares of the business services provider’s stock worth $12,554,000 after buying an additional 49,851 shares during the period. Prudential PLC acquired a new stake in Paychex in the first quarter valued at approximately $1,019,000. Finally, Brighton Jones LLC acquired a new position in shares of Paychex in the 1st quarter valued at $237,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Performance

Shares of PAYX traded up $0.88 on Thursday, reaching $122.41. 667,452 shares of the stock traded hands, compared to its average volume of 1,661,870. The firm has a market cap of $44.05 billion, a price-to-earnings ratio of 27.14, a P/E/G ratio of 3.23 and a beta of 0.94. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.23 and a quick ratio of 1.23. Paychex, Inc. has a 12 month low of $104.09 and a 12 month high of $129.70. The stock’s 50-day moving average price is $121.92 and its 200-day moving average price is $119.50.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, February 27th. Shareholders of record on Tuesday, February 13th were given a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 2.91%. The ex-dividend date was Monday, February 12th. Paychex’s dividend payout ratio (DPR) is 79.11%.

Paychex announced that its Board of Directors has initiated a stock repurchase program on Friday, January 19th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the business services provider to purchase up to 0.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research firms have issued reports on PAYX. Evercore ISI reaffirmed an “in-line” rating and set a $118.00 price target on shares of Paychex in a research note on Tuesday. Stifel Nicolaus raised their target price on Paychex from $124.00 to $130.00 and gave the company a “hold” rating in a research note on Friday, December 22nd. Royal Bank of Canada reiterated a “sector perform” rating and issued a $130.00 price target on shares of Paychex in a research report on Friday, December 22nd. JPMorgan Chase & Co. dropped their price target on Paychex from $134.00 to $126.00 and set an “underweight” rating on the stock in a research note on Friday, December 22nd. Finally, Citigroup lowered their target price on Paychex from $130.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 26th. 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 data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $122.77.

Insider Transactions at Paychex

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of the stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $120.53, for a total value of $1,865,924.93. Following the transaction, the vice president now owns 82,690 shares of the company’s stock, valued at $9,966,625.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 11.50% of the company’s stock.

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.