Bank of America Corp DE Takes $434.06 Million Position in Paychex, Inc. $PAYX

Key Points

• Bank of America acquired 4.41 million Paychex shares worth approximately $434.1 million in the second quarter, giving it a 1.24% stake. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations, reporting $1.32 in earnings per share and $1.61 billion in revenue, with revenue up 12.5% year over year.
• The company pays a quarterly dividend of $1.19, equivalent to a 4.0% annualized yield, while analysts maintain a consensus “Hold” rating and a $126.76 price target.

Bank of America Corp DE bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 4,414,326 shares of the business services provider's stock, valued at approximately $434,061,000. Bank of America Corp DE owned 1.24% of Paychex at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the company. Bontempo Ohly Capital Mgmt LLC acquired a new stake in Paychex during the 2nd quarter worth approximately $4,229,000. Windsor Advisory Group LLC acquired a new stake in Paychex during the second quarter worth about $20,855,000. Freestone Grove Partners LP bought a new position in Paychex in the second quarter valued at approximately $13,807,000. Man Group plc bought a new position in shares of Paychex in the 2nd quarter valued at $406,000. Finally, Western Wealth Management LLC bought a new position in Paychex in the second quarter valued at about $1,213,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Down 0.2%

PAYX opened at $118.30 on Wednesday. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $134.14. The company has a 50 day moving average of $118.38 and a 200 day moving average of $103.31. 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 company has a market cap of $42.08 billion, a PE ratio of 24.19, a price-to-earnings-growth ratio of 2.49 and a beta of 0.82.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its earnings results 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 business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the firm posted $1.19 EPS. Paychex's 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, sell-side analysts expect that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were issued a $1.19 dividend. The ex-dividend date was Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.0%. Paychex's payout ratio is currently 97.34%.

Insider Buying and Selling

In related news, CFO Robert Schrader sold 2,600 shares of the company's stock in a transaction 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 directly owned 18,547 shares in the company, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Joseph 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 transaction, the director directly owned 67,364 shares of the company's stock, valued at $6,618,513. The trade was a 5.48% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Jefferies Financial Group increased their target price on Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a research report on Wednesday, August 12th. Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 20th. Cantor Fitzgerald reiterated an "underweight" rating and issued a $107.00 price objective on shares of Paychex in a research note on Monday, July 20th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. Finally, UBS Group upped their price objective on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $126.76.

Paychex Profile

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers' compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.

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.