310,631 Shares in Paychex, Inc. $PAYX Purchased by Tocqueville Asset Management L.P.

Key Points

• Tocqueville Asset Management purchased 310,631 Paychex shares worth approximately $30.5 million, while institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations with $1.32 EPS and $1.61 billion in revenue, up 12.5% year over year. The company declared a $1.19 quarterly dividend, implying a 3.9% annualized yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $109.20, below the stock’s reported $122.50 opening price; recent insider activity included share sales by the CFO and a director.

Tocqueville Asset Management L.P. acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The fund acquired 310,631 shares of the business services provider's stock, valued at approximately $30,544,000. Tocqueville Asset Management L.P. owned approximately 0.09% of Paychex at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. West Family Investments Inc. purchased a new position in shares of Paychex in the second quarter valued at approximately $228,000. NewEdge Wealth LLC purchased a new stake in shares of Paychex during the second quarter worth approximately $2,269,000. Danica Pension Livsforsikringsaktieselskab acquired a new position in Paychex in the 2nd quarter valued at $9,157,000. Danske Bank A S acquired a new position in Paychex in the 2nd quarter valued at $20,791,000. Finally, Diversify Advisory Services LLC purchased a new position in Paychex in the 2nd quarter valued at $1,216,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Up 2.1%

Shares of PAYX opened at $122.50 on Thursday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The stock has a fifty day simple moving average of $110.13 and a two-hundred day simple moving average of $99.70. The company has a market capitalization of $43.57 billion, a PE ratio of 25.05 and a beta of 0.81.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same quarter in the previous year, the company posted $1.19 EPS. The company's revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have issued reports on PAYX shares. Citigroup lifted their target price on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Jefferies Financial Group raised their price target on shares of Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a research note on Wednesday, August 12th. TD Cowen upped their price objective on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research note on Monday, June 8th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Finally, UBS Group raised their target price on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Paychex presently has a consensus rating of "Hold" and an average target price of $109.20.

Insider Activity at Paychex

In other news, CFO Robert L. Schrader sold 2,600 shares of the firm's 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 completion of the sale, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. This trade represents a 12.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph M. Tucci sold 3,907 shares of the company's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.80% of the company's stock.

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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