Assetmark Inc. Raises Stock Position in Paychex, Inc. $PAYX

Key Points

• Assetmark Inc. more than doubled its position in Paychex, increasing its stake by 107.1% in the first quarter to 56,885 shares valued at about $5.24 million.
• Paychex reported better-than-expected quarterly results, with EPS of $1.32 and revenue of $1.61 billion, both slightly ahead of analyst estimates. Revenue rose 12.5% year over year, and the company maintained strong profitability with a 50.90% return on equity.
• The company also announced a quarterly dividend of $1.19 per share, implying an annualized yield of 4.3%, while its stock traded down 2.8% to $111.96 amid a consensus analyst rating of “Hold.”

Assetmark Inc. grew its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 107.1% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 56,885 shares of the business services provider's stock after acquiring an additional 29,424 shares during the period. Assetmark Inc.'s holdings in Paychex were worth $5,240,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the company. Capital International Investors increased its stake 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 valued at $3,395,583,000 after buying an additional 11,243,295 shares during the period. Vanguard Group Inc. lifted its stake in Paychex by 12.1% in 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 during the period. Federated Hermes Inc. grew its holdings in Paychex by 4,141.2% during the 4th 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 purchased a new position in Paychex during the 4th quarter valued at about $257,699,000. Finally, Voloridge Investment Management LLC purchased a new position in Paychex during the 3rd quarter valued at about $117,809,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on PAYX shares. UBS Group lowered their price target on shares of Paychex from $100.00 to $98.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. TD Cowen boosted their price objective on shares of Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research note on Monday, June 8th. Wells Fargo & Company lowered their target price on Paychex from $116.00 to $95.00 and set an "underweight" rating for the company in a report on Thursday, March 26th. Robert W. Baird dropped their target price on Paychex from $148.00 to $125.00 and set a "neutral" rating on the stock in a research report on Thursday, March 26th. Finally, BMO Capital Markets lifted their price target on Paychex to $52.00 and gave the company an "outperform" rating in a report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $106.40.

Paychex Trading Down 2.8%

NASDAQ:PAYX opened at $111.96 on Wednesday. The stock has a market capitalization of $39.82 billion, a price-to-earnings ratio of 22.90 and a beta of 0.84. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11. 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 firm has a 50 day moving average of $100.84 and a 200 day moving average of $98.29.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business's quarterly revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts anticipate 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. Shareholders 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 dividend on an annualized basis and a yield of 4.3%. Paychex's dividend payout ratio (DPR) is 97.34%.

Insiders Place Their Bets

In other news, Director Joseph M. Tucci sold 3,907 shares of the business's stock in a transaction dated 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 owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.80% of the company's stock.

Paychex Company 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.

Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.