New Hampshire Trust Purchases Paychex Shares
New Hampshire Trust has emerged as a prominent institutional investor with the acquisition of new shares in Paychex, Inc. (NASDAQ:PAYX). According to its recent filing with the Securities and Exchange Commission (SEC), the firm purchased 3,946 shares of the business services provider’s stock worth approximately $456,000 during the last quarter.
Paychex is known for offering human capital management solutions such as payroll, human resources, insurance and retirement for small and medium-sized businesses. Its solutions are comprehensive and serve critical functions like payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services.
The company released its earnings report on March 29th this year. During that period, Paychex reported an impressive revenue growth as its net income grew by over eight percent year-over-year. The firm had revenues of $1.38 billion during the quarter, which exceeded analysts’ expectations.
The quarter also recorded impressive profitability indices for Paychex. The company’s return on equity at 46.56% demonstrates a level of financial efficiency superior to many in its industry.
The earnings per share for the quarter was $1.29 cents which exceeded the consensus estimate by five cents ($0.05). Another significant takeaway from Paychex’s latest financials is their revenue growth rate that’s ahead of its competitors in similar fields.
Investors must note that Paychex continues to gain traction and has attracted investors’ attention over recent months because of promising indications from market trends indicating growth potential across different areas where it offers solutions.
Going forward; insiders’ comments reveal that there are numerous developments within Paychex’s pipeline currently gathering momentum: new markets are being developed (specifically overseas) while streamlining human capital management solutions delivery through better user experience remains a constant priority.
In conclusion; New Hampshire Trust has made a substantial investment in Paychex, indicating growing investor appetite for the company. The company has shown impressive revenue growth and profitability attributes and is set to maintain this momentum. Investors who intend to invest in US financial markets could consider seeking professional guidance and looking into the potentials of Paychex based on these various considerations before committing their resources.
Updated on: 21/05/2023
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Institutional Investor Activity on the Rise for Paychex, Inc.
Paychex, Inc: An Overview of Institutional Investor Activity
Recent reports reveal that Paychex, Inc, a leading human capital management solutions provider for small and medium-sized businesses, has experienced an increase in institutional investor activity. A number of investors have either added to or reduced their stakes in the company, with Avantax Advisory Services Inc lifting its holdings in Paychex by 13.6% in the third quarter. National Bank of Canada FI also boosted its stake in shares of Paychex by 145.0% during the fourth quarter.
OneAscent Financial Services LLC purchased a new stake in Paychex worth approximately $230,000 during the fourth quarter while Blueshift Asset Management LLC acquired a new stake worth $263,000 in the third quarter. Bleakley Financial Group LLC also acquired a new stake worth approximately $990,000 during the same period. Hedge funds and other institutional investors own 71.14% of Paychex’s stock.
Paychex is listed on NASDAQ and opened at $109.14 on Friday with a market capitalization of $39.35 billion and a P/E ratio of 26.21, a P/E/G ratio of 3.34 and a beta of 0.97. The company has a debt-to-equity ratio of 0.23 and both its current ratio and quick ratio are at 1:27 with its fifty-day simple moving average at $108:83 while its two-hundred-day simple moving average stands at $114:24; higher than the current opening figure.
In addition to providing payroll services alongside insurance and retirement solutions for businesses and employees under coverage with them, Paychex offers hiring services, timekeeping software and employee benefits options via startup services.
A quarterly dividend will be distributed among record holders as at May-11th but whose payment schedule has been set for May-25th 2022 of $0.89 per share, representing a dividend payout ratio (DPR) of 85.78%. The ex-dividend date falls on May-10th.
Recent assessments from rating agencies like Stifel Nicolaus and Barclays have given Paychex mixed reviews with both changing their views on the stock twice. Stifel Nicolaus stated a “hold” rating and upped the price objective from $119:00 to $122:00 in March but previously gave Paychex an upgrade with a price target – not objective – adjustment from $102:95 to $119:00 in January.
Barclays, however, raised Paychex’s prospect in April by upgrading its recommendations on the stock from underweight to overweight and setting a new $109:00 price objective only days after it had dropped said rating to underweight also keeping the same objective.
Meanwhile, Bank of America downgraded shares of Paychex from a “neutral” rating to an “underperform” rating, dropping its price target for the company from $119:00 to $105:00 recent reports show that three research analysts have rated the stock as sell while seven have assigned hold ratings and three have issued buy ratings; contributing towards Bloomberg.com’s assertion that Paychex currently has an average rating of “Hold” and consensus targets around $122.79.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.