Danica Pension Livsforsikringsaktieselskab Invests $9.16 Million in Paychex, Inc. $PAYX

Key Points

• Danica Pension acquired 93,127 Paychex shares worth approximately $9.16 million in the second quarter. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion and earnings of $1.32 per share, slightly exceeding analyst estimates; revenue increased 12.5% year over year.
• The company declared a quarterly dividend of $1.19 per share, representing an annualized payout of $4.76 and a 4.0% yield. Analysts maintain a consensus “Hold” rating with an average price target of $109.20.

Danica Pension Livsforsikringsaktieselskab acquired a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 93,127 shares of the business services provider's stock, valued at approximately $9,157,000.

Several other hedge funds have also recently modified their holdings of PAYX. Cornerstone Planning Group LLC raised its holdings in shares of Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after acquiring an additional 268 shares during the last quarter. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex in the fourth quarter worth approximately $31,000. Kingdom Financial Group LLC. purchased a new stake in shares of Paychex during the fourth quarter worth approximately $33,000. Leonteq Securities AG increased its position in shares of Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after purchasing an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC acquired a new position in Paychex in the 4th quarter valued at $34,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Activity

In other news, Director Joseph M. Tucci sold 3,907 shares of the firm'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 transaction of $383,862.75. Following the completion of the sale, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex 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 sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.80% of the company's stock.

Paychex Stock Up 1.2%

Shares of PAYX opened at $119.93 on Wednesday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19. The company has a market capitalization of $42.66 billion, a PE ratio of 24.53 and a beta of 0.81. The stock has a fifty day simple moving average of $109.70 and a two-hundred day simple moving average of $99.56. 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 (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share 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 for the quarter, compared to analysts' expectations of $1.60 billion. During the same quarter in the previous year, the company posted $1.19 EPS. The company'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 forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be paid a dividend of $1.19 per share. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 4.0%. Paychex's payout ratio is 97.34%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Jefferies Financial Group raised their price objective on Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. JPMorgan Chase & Co. increased their target price on shares of Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a research report on Thursday, June 25th. Morgan Stanley raised their price target on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. Stifel Nicolaus boosted their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research report on Wednesday, June 17th. Finally, Cantor Fitzgerald reaffirmed an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Paychex has a consensus rating of "Hold" and an average target price of $109.20.

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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