Grandfield & Dodd LLC Has $41.26 Million Position in Paychex, Inc. $PAYX

Grandfield & Dodd LLC reduced its stake in Paychex, Inc. (NASDAQ:PAYX) by 2.1% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 367,832 shares of the business services provider’s stock after selling 7,836 shares during the period. Paychex comprises approximately 2.3% of Grandfield & Dodd LLC’s investment portfolio, making the stock its 12th largest position. Grandfield & Dodd LLC owned 0.10% of Paychex worth $41,263,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. ABC Arbitrage SA boosted its stake in shares of Paychex by 61.4% in the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after purchasing an additional 10,726 shares in the last quarter. GSA Capital Partners LLP acquired a new stake in shares of Paychex in the 3rd quarter valued at approximately $1,877,000. Alps Advisors Inc. boosted its position in Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock worth $30,494,000 after buying an additional 41,114 shares during the period. Vanguard Group Inc. boosted its position in Paychex by 12.1% during the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after buying an additional 4,583,157 shares during the period. Finally, First Long Island Investors LLC boosted its position in Paychex by 23.9% during the 3rd quarter. First Long Island Investors LLC now owns 99,607 shares of the business services provider’s stock worth $12,626,000 after buying an additional 19,185 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Up 1.5%

Paychex stock opened at $96.98 on Friday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $161.24. The firm has a 50 day moving average price of $92.37 and a two-hundred day moving average price of $100.82. The firm has a market cap of $34.75 billion, a price-to-earnings ratio of 21.36 and a beta of 0.84.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.04. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The firm had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter last year, the business earned $1.49 EPS. The company’s revenue was up 19.9% compared to the same quarter last year. Equities analysts predict that Paychex, Inc. will post 5.5 EPS for the current year.

Paychex Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were issued a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a yield of 4.9%. The ex-dividend date was Wednesday, May 13th. This is a positive change from Paychex’s previous quarterly dividend of $1.08. Paychex’s dividend payout ratio (DPR) is 104.85%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. BMO Capital Markets lifted their target price on shares of Paychex to $52.00 and gave the stock an “outperform” rating in a research report on Thursday, March 26th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a research report on Thursday. Guggenheim assumed coverage on shares of Paychex in a research report on Thursday, March 19th. They set a “neutral” rating on the stock. Jefferies Financial Group cut their target price on shares of Paychex from $110.00 to $105.00 and set a “hold” rating on the stock in a research report on Thursday, March 26th. Finally, TD Cowen upgraded shares of Paychex to a “hold” rating in a research report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Paychex presently has an average rating of “Reduce” and an average price target of $106.38.

Paychex Company 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.