Two Point Capital Management Inc. Has $7.83 Million Position in Paychex, Inc. (NASDAQ:PAYX)

Two Point Capital Management Inc. grew its stake in Paychex, Inc. (NASDAQ:PAYX) by 3.6% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 65,774 shares of the business services provider’s stock after purchasing an additional 2,270 shares during the period. Paychex comprises approximately 3.6% of Two Point Capital Management Inc.’s investment portfolio, making the stock its 13th largest position. Two Point Capital Management Inc.’s holdings in Paychex were worth $7,834,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Outlook Wealth Advisors LLC acquired a new stake in Paychex during the 4th quarter worth approximately $214,000. Cerity Partners LLC boosted its position in Paychex by 80.2% during the 4th quarter. Cerity Partners LLC now owns 343,269 shares of the business services provider’s stock worth $40,887,000 after buying an additional 152,818 shares during the period. BKM Wealth Management LLC acquired a new stake in Paychex during the 4th quarter worth approximately $1,229,000. Sequoia Financial Advisors LLC boosted its position in Paychex by 366.5% during the 4th quarter. Sequoia Financial Advisors LLC now owns 20,863 shares of the business services provider’s stock worth $2,485,000 after buying an additional 16,391 shares during the period. Finally, Nordea Investment Management AB boosted its position in Paychex by 218.8% during the 4th quarter. Nordea Investment Management AB now owns 680,257 shares of the business services provider’s stock worth $80,794,000 after buying an additional 466,890 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PAYX. Wedbush reiterated a “neutral” rating and set a $115.00 target price on shares of Paychex in a research report on Wednesday, April 3rd. Bank of America raised their price target on shares of Paychex from $108.00 to $111.00 and gave the stock an “underperform” rating in a report on Wednesday, April 3rd. TD Cowen lowered their price target on shares of Paychex from $122.00 to $121.00 and set a “hold” rating for the company in a report on Wednesday, April 3rd. Evercore ISI restated an “in-line” rating and set a $118.00 price target on shares of Paychex in a report on Tuesday, March 26th. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $130.00 price target on shares of Paychex in a report on Wednesday, April 3rd. 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 MarketBeat, Paychex presently has an average rating of “Hold” and an average price target of $123.00.

Paychex Stock Performance

Shares of PAYX traded down $1.89 on Friday, reaching $120.08. 1,608,935 shares of the company’s stock traded hands, compared to its average volume of 1,805,227. The stock has a market cap of $43.22 billion, a PE ratio of 26.57, a PEG ratio of 3.45 and a beta of 0.93. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.21. The stock’s 50 day simple moving average is $122.01 and its two-hundred day simple moving average is $120.36. Paychex, Inc. has a 52-week low of $104.09 and a 52-week high of $129.70.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.37 by $0.01. Paychex had a return on equity of 46.14% and a net margin of 31.86%. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm posted $1.29 EPS. The firm’s revenue for the quarter was up 4.2% on a year-over-year basis. On average, analysts forecast that Paychex, Inc. will post 4.71 earnings per share for the current fiscal year.

Paychex declared that its Board of Directors has initiated a share repurchase plan on Friday, January 19th that allows the company to buyback $400.00 million in outstanding shares. This buyback authorization allows the business services provider to purchase up to 0.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of Paychex stock in a transaction that occurred on 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 directly owns 82,690 shares of the company’s stock, valued at approximately $9,966,625.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 11.50% of the stock is owned by corporate insiders.

Paychex Company Profile

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.