CORDA Investment Management LLC. Takes Position in Paychex, Inc. $PAYX

Key Points

• CORDA Investment Management acquired 177,460 Paychex shares worth approximately $17.45 million during the second quarter. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion and adjusted earnings of $1.32 per share, slightly exceeding analyst expectations; revenue increased 12.5% year over year.
• Shares recently fell 3.9% to $116.93. Paychex maintains a quarterly dividend of $1.19, equivalent to a 4.1% annual yield, while analysts’ consensus rating remains “Hold” with a $111 average price target.

CORDA Investment Management LLC. bought a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 177,460 shares of the business services provider's stock, valued at approximately $17,450,000.

A number of other hedge funds also recently modified their holdings of the business. 44 Wealth Management LLC raised its position in Paychex by 2.7% during the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock valued at $479,000 after buying an additional 86 shares during the period. Smartleaf Asset Management LLC lifted its stake in Paychex by 3.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock worth $381,000 after acquiring an additional 89 shares in the last quarter. Parkside Financial Bank & Trust boosted its position in Paychex by 6.3% during the 2nd quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider's stock worth $149,000 after acquiring an additional 90 shares during the period. Prosperity Consulting Group LLC boosted its position in Paychex by 1.4% during the 3rd quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider's stock worth $922,000 after acquiring an additional 100 shares during the period. Finally, SBI Securities Co. Ltd. grew its stake in Paychex by 14.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider's stock valued at $90,000 after acquiring an additional 101 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insider Buying and Selling at Paychex

In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the 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 transaction, 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the company's 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 sale, the director owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company's stock.

Paychex Stock Down 3.9%

Shares of PAYX traded down $4.78 during midday trading on Tuesday, reaching $116.93. 3,178,869 shares of the stock were exchanged, compared to its average volume of 3,493,140. The company has a market cap of $41.59 billion, a price-to-earnings ratio of 23.91, a P/E/G ratio of 2.55 and a beta of 0.82. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $135.97. The firm has a 50 day simple moving average of $117.31 and a 200-day simple moving average of $102.38.

Paychex (NASDAQ:PAYX - Get Free Report) last announced 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. The business had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th were given a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex's payout ratio is currently 97.34%.

Analyst Upgrades and Downgrades

PAYX has been the topic of a number of research reports. Citigroup upped their target price on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 30th. UBS Group boosted their price objective on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. 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. Jefferies Financial Group increased their target price on shares of Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. Finally, Stephens assumed coverage on shares of Paychex in a research note on Friday. They set an "equal weight" rating and a $132.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $111.00.

Paychex 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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