35,351 Shares in Paychex, Inc. $PAYX Acquired by Arete Wealth Advisors LLC

Key Points

• Arete Wealth Advisors acquired 35,351 Paychex shares worth approximately $3.26 million during the first quarter. Institutional investors and hedge funds collectively own 83.47% of PAYX.
• Paychex reported quarterly earnings of $1.32 per share and revenue of $1.61 billion, slightly exceeding analyst estimates; revenue increased 12.5% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $108.20, while Paychex declared a $1.19 quarterly dividend, implying a 4.1% annualized yield.

Arete Wealth Advisors LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 35,351 shares of the business services provider's stock, valued at approximately $3,257,000.

Other hedge funds also recently made changes to their positions in the company. Cornerstone Planning Group LLC boosted its position in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock worth $30,000 after buying an additional 268 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Paychex during the fourth quarter valued at approximately $31,000. Kingdom Financial Group LLC. acquired a new position in shares of Paychex during the fourth quarter worth $33,000. Leonteq Securities AG lifted its position in shares of Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after purchasing an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC purchased a new position in shares of Paychex in the fourth quarter valued at $34,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Insiders Place Their Bets

In other news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 sale, the director directly owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on PAYX. Citigroup increased their price target on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday. Morgan Stanley upped their target price on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. Cantor Fitzgerald reiterated an "underweight" rating and set a $107.00 target price on shares of Paychex in a research note on Monday, July 20th. 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 report on Thursday, June 25th. Finally, Royal Bank Of Canada restated a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $108.20.

Paychex Stock Performance

PAYX stock opened at $116.84 on Friday. The company has a market capitalization of $41.56 billion, a P/E ratio of 23.89 and a beta of 0.84. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $146.83. The company has a 50-day simple moving average of $104.42 and a 200 day simple moving average of $98.61.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its 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. The business had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the business posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Sell-side analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently disclosed 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 is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.1%. Paychex's dividend payout ratio (DPR) is presently 97.34%.

About Paychex

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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