Canandaigua National Bank & Trust Co. Purchases New Shares in Paychex, Inc. $PAYX

Key Points

• Canandaigua National Bank & Trust opened a new Paychex position, purchasing 53,736 shares valued at approximately $5.28 million. Institutional investors collectively own 83.47% of Paychex.
• Paychex exceeded quarterly expectations, reporting $1.32 in EPS and $1.61 billion in revenue, with revenue rising 12.5% year over year. The company also declared a $1.19 quarterly dividend, equivalent to a 4.0% annualized yield.
• Analysts maintain a consensus “Hold” rating with a $108.20 price target, below the stock’s reported $118.66 price. Recent insider activity included stock sales by the CFO and a director.

Canandaigua National Bank & Trust Co. acquired a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 53,736 shares of the business services provider's stock, valued at approximately $5,284,000.

A number of other large investors have also added to or reduced their stakes in the stock. Grove Bank & Trust boosted its holdings in Paychex by 140.2% in the 2nd quarter. Grove Bank & Trust now owns 1,088 shares of the business services provider's stock worth $107,000 after buying an additional 635 shares during the period. Bangor Savings Bank lifted its holdings in Paychex by 7.3% during the 2nd quarter. Bangor Savings Bank now owns 8,358 shares of the business services provider's stock worth $822,000 after purchasing an additional 567 shares in the last quarter. Somerset Trust Co boosted its stake in Paychex by 1.1% in the 2nd quarter. Somerset Trust Co now owns 34,336 shares of the business services provider's stock worth $3,376,000 after purchasing an additional 358 shares during the period. Trilogy Capital Inc. grew its holdings in Paychex by 19.4% during the 2nd quarter. Trilogy Capital Inc. now owns 35,984 shares of the business services provider's stock valued at $3,538,000 after buying an additional 5,849 shares in the last quarter. Finally, Versant Capital Management Inc lifted its holdings in shares of Paychex by 146.0% in the second quarter. Versant Capital Management Inc now owns 2,376 shares of the business services provider's stock worth $234,000 after buying an additional 1,410 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Stock Up 0.8%

Shares of NASDAQ PAYX opened at $118.66 on Wednesday. The company has a market cap of $42.20 billion, a price-to-earnings ratio of 24.27 and a beta of 0.81. 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's fifty day moving average is $105.32 and its 200 day moving average is $98.62. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $141.89.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the firm posted $1.19 earnings per share. The company's quarterly 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. On average, equities research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The company also recently declared 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 is 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 Transactions at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of the firm's stock in a transaction that occurred 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 owned 18,547 shares of the company's stock, valued at $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph M. 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 completion of the transaction, 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 SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

PAYX has been the topic of several research analyst reports. JPMorgan Chase & Co. upped their price target on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a report on Thursday, June 25th. UBS Group boosted their price objective on Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Morgan Stanley increased their price target on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Citigroup lifted their price objective on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Finally, TD Cowen lifted their price target on Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research note on Monday, June 8th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $108.20.

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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