E Fund Management Co. Ltd. Invests $1.34 Million in Paychex, Inc. $PAYX

Key Points

• E Fund Management acquired 13,594 Paychex shares worth approximately $1.34 million during the second quarter. Institutional investors collectively own 83.47% of the company, with Vanguard and Capital International among the largest holders.
• Paychex reported quarterly revenue of $1.61 billion and earnings of $1.32 per share, modestly exceeding analyst estimates; revenue increased 12.5% year over year. Analysts maintain a consensus “Hold” rating with a $109.20 target price.
• Paychex declared a quarterly dividend of $1.19 per share, equivalent to an annualized $4.76 and a 3.9% yield. The stock opened at $122.50, while company insiders recently reduced their holdings through stock sales.

E Fund Management Co. Ltd. purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 13,594 shares of the business services provider's stock, valued at approximately $1,337,000.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Vanguard Group Inc. lifted its stake in Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. Capital International Investors lifted its position in shares of Paychex by 59.1% during the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider's stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. BlackRock Inc. purchased a new position in Paychex in the 2nd quarter valued at approximately $2,728,970,000. State Street Corp grew its stake in Paychex by 1.6% during the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider's stock worth $1,569,218,000 after purchasing an additional 216,045 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Paychex by 2.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider's stock worth $1,295,698,000 after buying an additional 263,152 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insider Activity at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction on 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 transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 transaction of $383,862.75. Following the transaction, the director owned 67,364 shares of the company's stock, valued at $6,618,513. This represents a 5.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.80% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PAYX. Jefferies Financial Group upped their price target 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. boosted their price target on Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a research report on Thursday, June 25th. Cantor Fitzgerald restated an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 20th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $109.20.

Paychex Stock Up 2.1%

PAYX opened at $122.50 on Thursday. The firm has a 50 day moving average price of $110.13 and a 200 day moving average price of $99.70. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $141.19. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market cap of $43.57 billion, a PE ratio of 25.05 and a beta of 0.81.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its 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 business 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 earned $1.19 earnings per share. The business'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. Sell-side analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio is presently 97.34%.

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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