23,072 Shares in Paychex, Inc. $PAYX Purchased by NewEdge Wealth LLC

Key Points

• NewEdge Wealth LLC acquired 23,072 Paychex shares worth approximately $2.27 million during the second quarter. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion and adjusted earnings of $1.32 per share, slightly exceeding analyst expectations; revenue increased 12.5% year over year.
• The company declared a quarterly dividend of $1.19, or $4.76 annualized, representing a 3.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $109.20, below the reported share price of $122.91.

NewEdge Wealth LLC acquired a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 23,072 shares of the business services provider's stock, valued at approximately $2,269,000.

Other large investors have also modified their holdings of the company. Vanguard Group Inc. grew its position in Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after acquiring an additional 4,583,157 shares during the last quarter. Capital International Investors lifted its position in shares of Paychex by 59.1% during the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider's stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Paychex during the second quarter worth $2,728,970,000. State Street Corp lifted its position in shares of Paychex by 1.6% during the fourth quarter. State Street Corp now owns 13,988,393 shares of the business services provider's stock worth $1,569,218,000 after purchasing an additional 216,045 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of Paychex by 2.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider's stock valued at $1,295,698,000 after purchasing an additional 263,152 shares during the period. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Stock Performance

Shares of Paychex stock opened at $122.91 on Friday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The stock's fifty day moving average price is $110.60 and its 200-day moving average price is $99.84. The firm has a market cap of $43.72 billion, a P/E ratio of 25.14 and a beta of 0.81. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.19.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the prior year, the firm earned $1.19 earnings per share. The firm's revenue for the quarter was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio is presently 97.34%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PAYX. JPMorgan Chase & Co. raised their price target on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Stifel Nicolaus boosted their price objective on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. Royal Bank Of Canada restated a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. Morgan Stanley raised their target price on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 30th. Finally, Jefferies Financial Group lifted their price target on shares of Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $109.20.

Insider Buying and Selling

In related news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Joseph M. Tucci sold 3,907 shares of the business's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director directly owned 67,364 shares of the company's stock, valued at $6,618,513. This trade represents a 5.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is currently owned by company insiders.

Paychex 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.

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