Boyd Watterson Reduces Stake in Paychex, Institutional Investors Active

Boyd Watterson Asset Management LLC has decreased its holdings in Paychex, Inc. (NASDAQ: PAYX) by 17.6% during the second quarter of 2023. This reduction, disclosed to the Securities and Exchange Commission, leaves the firm with 643 shares valued at approximately $94,000 at the end of the reporting period. The adjustment reflects a broader trend among institutional investors actively managing their positions in the business services sector.

Several other institutional investors have also made notable adjustments to their stakes in Paychex. For instance, Summit Wealth Partners LLC increased its position by 2.4% in the first quarter, bringing its total shares to 3,027, with a value of $467,000 after acquiring an additional 70 shares. Similarly, LGT Group Foundation raised its holdings by 2.8%, now owning 2,528 shares worth $390,000. Brighton Jones LLC also reported a 1.0% increase, now holding 6,954 shares valued at $1.012 million.

King Wealth Management Group and Sunflower Bank N.A. have also increased their stakes by 4.7% and 3.4%, respectively. King Wealth Management now owns 1,669 shares valued at $257,000, while Sunflower Bank has 2,305 shares worth $335,000. Currently, institutional investors and hedge funds collectively own 83.47% of Paychex’s stock.

Paychex Stock Performance and Dividend Announcement

As of the latest trading session, Paychex stock opened at $125.01. The company boasts a market capitalization of $44.99 billion and key financial ratios, including a debt-to-equity ratio of 1.15 and a price-to-earnings (P/E) ratio of 28.09. Paychex has seen a 52-week low of $119.02 and a high of $161.24.

In a significant update for shareholders, Paychex has declared a quarterly dividend of $1.08 per share, to be paid on November 26, 2023. Investors on record by November 7, 2023 will receive this dividend, translating to an annualized yield of 3.5%. The company’s payout ratio currently stands at 97.08%, reflecting its commitment to returning value to shareholders.

Analyst Ratings and Market Outlook

Market analysts have recently revised their price targets for Paychex, indicating varied perspectives on the stock’s performance. TD Cowen reduced its target from $140.00 to $126.00, maintaining a “hold” rating. UBS Group similarly lowered its target to $132.00 while keeping a “neutral” stance. Jefferies Financial Group set a price objective of $130.00.

Weiss Ratings upgraded Paychex from a “hold (C+)” to a “buy (B-)” rating, suggesting potential for growth. Meanwhile, Robert W. Baird adjusted their price objective down to $148.00 from $153.00, also indicating a “neutral” rating. Overall, the consensus rating stands at “Reduce” with an average target price of $139.87.

Paychex, Inc. operates integrated human capital management solutions, specializing in payroll, benefits, human resources, and insurance services primarily for small to medium-sized businesses across the United States, Europe, and India. The company continues to adapt to market conditions while maintaining a focus on shareholder returns and growth.