Bank of Nova Scotia Buys New Holdings in Paychex, Inc. $PAYX

Key Points

• Bank of Nova Scotia acquired 268,465 Paychex shares worth approximately $26.4 million, while institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly earnings and revenue expectations, reporting $1.32 in EPS and $1.61 billion in revenue, with revenue up 12.5% year over year. The company also declared a $1.19 quarterly dividend, yielding about 3.8% annually.
• Analysts maintain a consensus “Hold” rating, with an average price target of $109.20; several firms remain cautious, citing underweight or sector-perform views.

Bank of Nova Scotia purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 268,465 shares of the business services provider's stock, valued at approximately $26,398,000. Bank of Nova Scotia owned approximately 0.08% of Paychex at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. 44 Wealth Management LLC lifted its position in shares of Paychex by 2.7% during the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock worth $479,000 after buying an additional 86 shares during the period. Smartleaf Asset Management LLC grew its position in Paychex by 3.5% in the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock valued at $381,000 after acquiring an additional 89 shares during the period. Prosperity Consulting Group LLC grew its position in Paychex by 1.4% in the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider's stock valued at $922,000 after acquiring an additional 100 shares during the period. SBI Securities Co. Ltd. raised its stake in Paychex by 14.5% during the fourth quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider's stock worth $90,000 after acquiring an additional 101 shares in the last quarter. Finally, Zacks Investment Management raised its stake in Paychex by 5.1% during the third quarter. Zacks Investment Management now owns 2,094 shares of the business services provider's stock worth $265,000 after acquiring an additional 101 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Insiders Place Their Bets

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 $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the business's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.80% of the company's stock.

Paychex Trading Down 0.0%

Shares of NASDAQ PAYX opened at $124.47 on Monday. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $141.19. The company has a 50-day moving average of $111.08 and a two-hundred day moving average of $99.99. The company has a market cap of $44.27 billion, a PE ratio of 25.45 and a beta of 0.81. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS 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 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 earned $1.19 earnings per share. Paychex'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 expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The company also recently announced 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. This represents a $4.76 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is 97.34%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on PAYX shares. Jefferies Financial Group lifted their price target on shares of Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. JPMorgan Chase & Co. upped their price objective on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Weiss Ratings upgraded shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Finally, Cantor Fitzgerald reissued an "underweight" rating and issued a $107.00 target price on shares of Paychex in a report on Monday, July 20th. 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 given a Sell rating to the stock. According to MarketBeat.com, Paychex has a consensus rating of "Hold" and an average target price of $109.20.

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.

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