Fulton Bank N.A. Makes New Investment in Paychex, Inc. $PAYX

Fulton Bank N.A. purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX) during the fourth quarter, HoldingsChannel.com reports. The institutional investor purchased 11,273 shares of the business services provider’s stock, valued at approximately $1,265,000.

Several other institutional investors also recently modified their holdings of the business. Heartwood Wealth Advisors LLC bought a new stake in Paychex in the 3rd quarter worth about $25,000. Vermillion & White Wealth Management Group LLC bought a new position in Paychex during the 3rd quarter valued at about $27,000. Stance Capital LLC purchased a new stake in shares of Paychex during the 3rd quarter valued at about $31,000. MMA Asset Management LLC purchased a new stake in shares of Paychex during the 3rd quarter valued at about $32,000. Finally, Westfuller Advisors LLC bought a new stake in shares of Paychex in the third quarter worth approximately $35,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts recently weighed in on PAYX shares. Argus lowered their price objective on shares of Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research report on Friday, January 2nd. Wells Fargo & Company cut their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. JPMorgan Chase & Co. decreased their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research note on Monday, December 22nd. TD Cowen reissued a “hold” rating on shares of Paychex in a report on Monday, December 1st. Finally, Morgan Stanley dropped their price target on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. One analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $121.38.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $93.50 on Tuesday. 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 stock has a market capitalization of $33.56 billion, a PE ratio of 21.20 and a beta of 0.91. The firm’s 50 day moving average price is $98.10 and its 200-day moving average price is $111.83. Paychex, Inc. has a twelve month low of $86.89 and a twelve month high of $161.24.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, beating 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 period in the previous year, the business posted $1.14 earnings per share. The firm’s quarterly revenue was up 18.3% compared to the same quarter last year. Equities research analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex announced that its board has approved a stock repurchase program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 4.6%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

Paychex Profile

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.