abrdn plc Raises Stake in Paychex, Inc. (NASDAQ:PAYX)

abrdn plc boosted its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 51.5% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 142,591 shares of the business services provider’s stock after buying an additional 48,444 shares during the quarter. abrdn plc’s holdings in Paychex were worth $16,984,000 as of its most recent SEC filing.

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

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $122.52 on Thursday. The stock’s 50-day moving average is $122.02 and its 200 day moving average is $120.35. The stock has a market cap of $44.10 billion, a price-to-earnings ratio of 26.69, a P/E/G ratio of 3.43 and a beta of 0.93. Paychex, Inc. has a 1-year low of $104.09 and a 1-year 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 posted its quarterly earnings results on Tuesday, April 2nd. The business services provider reported $1.38 EPS for the quarter, topping the consensus estimate of $1.37 by $0.01. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same period last year, the firm posted $1.29 earnings per share. The business’s revenue was up 4.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Paychex, Inc. will post 4.71 EPS for the current fiscal year.

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

Insiders Place Their Bets

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

Analyst Upgrades and Downgrades

PAYX has been the subject of several recent research reports. Bank of America lifted their price target on Paychex from $108.00 to $111.00 and gave the company an “underperform” rating in a research report on Wednesday, April 3rd. Evercore ISI reissued an “in-line” rating and issued a $118.00 price target on shares of Paychex in a report on Tuesday, March 26th. TD Cowen reduced their price objective on shares of Paychex from $122.00 to $121.00 and set a “hold” rating for the company in a research note on Wednesday, April 3rd. Wedbush reiterated a “neutral” rating and issued a $115.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $130.00 price target on shares of Paychex in a research report on Wednesday, April 3rd. Two research analysts have rated the stock with a sell rating and ten have assigned a hold rating to the stock. Based on data from MarketBeat.com, Paychex currently has a consensus 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.