87,723 Shares in Paychex, Inc. $PAYX Purchased by Danica Pension Livsforsikringsaktieselskab

Key Points

• Danica Pension Livsforsikringsaktieselskab bought a new position in Paychex during the first quarter, acquiring 87,723 shares worth about $8.08 million.
• Paychex reported fiscal Q quarterly results that slightly beat expectations, with EPS of $1.32 and revenue of $1.61 billion, up 12.5% year over year.
• The company also announced a quarterly dividend of $1.19 per share, implying a 4.3% yield, while analyst sentiment remains mixed with a consensus rating of Hold.

Danica Pension Livsforsikringsaktieselskab acquired a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 87,723 shares of the business services provider's stock, valued at approximately $8,081,000.

Several other large investors have also bought and sold shares of the company. Capital International Investors raised its holdings in Paychex by 59.1% in 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 in the last quarter. Vanguard Group Inc. boosted its stake in Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. boosted its stake in Paychex by 4,141.2% during the fourth quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider's stock worth $270,267,000 after acquiring an additional 2,352,423 shares in the last quarter. Norges Bank bought a new stake in Paychex during the fourth quarter worth about $257,699,000. Finally, Voloridge Investment Management LLC purchased a new stake in Paychex in the third quarter worth about $117,809,000. 83.47% of the stock is owned by institutional investors.

Paychex Trading Down 1.1%

NASDAQ:PAYX opened at $110.74 on Thursday. The stock has a market cap of $39.39 billion, a price-to-earnings ratio of 22.65 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. The company's 50 day moving average price is $101.26 and its 200-day moving average price is $98.28. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11.

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 (EPS) for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the prior year, the firm posted $1.19 EPS. The firm's quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities research analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a dividend of $1.19 per share. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.3%. Paychex's dividend payout ratio (DPR) is 97.34%.

Insider Buying and Selling

In related news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.80% of the company's stock.

Analyst Upgrades and Downgrades

PAYX has been the subject of a number of analyst reports. Citigroup raised shares of Paychex from a "neutral" rating to a "buy" rating and raised their target price for the company from $99.00 to $140.00 in a research note on Monday, June 15th. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday. Robert W. Baird cut their price target on Paychex from $148.00 to $125.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. Cantor Fitzgerald reaffirmed an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research report on Monday. Finally, Morgan Stanley lifted their price objective on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Paychex has a consensus rating of "Hold" and a consensus target price of $107.53.

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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