Citizens Financial Group Inc. RI Buys Shares of 13,483 Paychex, Inc. $PAYX

Key Points

• Citizens Financial Group purchased 13,483 Paychex shares in the second quarter, worth approximately $1.33 million. Institutional investors and hedge funds collectively own 83.47% of the company.
• Analysts maintain a mostly neutral view, with Paychex receiving an average “Hold” rating and a consensus price target of $109.20. Recent quarterly results slightly exceeded expectations, with revenue rising 12.5% year over year.
• Paychex declared a quarterly dividend of $1.19 per share, equivalent to an annualized $4.76 payout and a 4.0% yield, though its dividend payout ratio is high at 97.34%.

Citizens Financial Group Inc. RI bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 13,483 shares of the business services provider's stock, valued at approximately $1,326,000.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Texas Capital Bank Wealth Management Services Inc acquired a new stake in Paychex in the second quarter valued at $259,000. Grandfield & Dodd LLC acquired a new position in shares of Paychex during the 2nd quarter worth approximately $41,013,000. MidFirst Bank purchased a new stake in Paychex in the 2nd quarter valued at approximately $61,000. BlackRock Inc. acquired a new stake in Paychex during the 2nd quarter valued at $2,728,970,000. Finally, Pallas Capital Advisors LLC purchased a new position in Paychex during the second quarter worth $1,277,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on PAYX shares. Cantor Fitzgerald reiterated an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. JPMorgan Chase & Co. lifted 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. TD Cowen upped their price objective on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research note on Monday, June 8th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Finally, UBS Group increased their price target on Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $109.20.

Insider Buying and Selling

In related news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction dated Monday, July 20th. The stock was 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 of the company's stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company's stock.

Paychex Stock Performance

Paychex stock opened at $119.93 on Wednesday. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $141.19. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The company has a market capitalization of $42.66 billion, a price-to-earnings ratio of 24.53 and a beta of 0.81. The firm's fifty day moving average price is $109.70 and its 200 day moving average price is $99.56.

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

Paychex Announces Dividend

The company 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 annualized dividend and a dividend yield of 4.0%. Paychex's dividend payout ratio (DPR) is presently 97.34%.

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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