Fluent Financial LLC Purchases New Holdings in Paychex, Inc. $PAYX

Key Points

• Fluent Financial LLC purchased 27,686 Paychex shares worth approximately $2.72 million in the second quarter, making PAYX about 1% of its portfolio. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations with EPS of $1.32 and revenue of $1.61 billion, while revenue rose 12.5% year over year. The company issued FY 2027 EPS guidance of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19, equivalent to $4.76 annually and a 4.0% yield. Analyst sentiment remains mixed, with a consensus “Hold” rating and a $108.20 target price.

Fluent Financial LLC acquired a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 27,686 shares of the business services provider's stock, valued at approximately $2,722,000. Paychex comprises about 1.0% of Fluent Financial LLC's investment portfolio, making the stock its 22nd largest holding.

Several other large investors have also modified their holdings of PAYX. Vanguard Group Inc. grew 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 acquiring an additional 4,583,157 shares in the last quarter. Capital International Investors increased its stake 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 valued at $3,395,583,000 after buying an additional 11,243,295 shares during the period. State Street Corp raised its holdings in shares of Paychex by 1.6% in the fourth quarter. State Street Corp now owns 13,988,393 shares of the business services provider's stock valued at $1,569,218,000 after acquiring an additional 216,045 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Paychex by 2.3% in 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 acquiring an additional 263,152 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Paychex by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider's stock worth $1,093,958,000 after acquiring an additional 78,760 shares during the period. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Price Performance

Shares of PAYX opened at $120.04 on Monday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $141.89. The stock has a market capitalization of $42.70 billion, a PE ratio of 24.55 and a beta of 0.81. The company's 50-day simple moving average is $106.75 and its 200-day simple moving average is $98.80.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business's quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The company also recently disclosed 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. This represents a $4.76 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's payout ratio is currently 97.34%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Citigroup raised their target price on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. UBS Group increased their price target 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. Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. JPMorgan Chase & Co. lifted their target price on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a report on Thursday, June 25th. Finally, Morgan Stanley boosted their price target on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. 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 given a Sell rating to the stock. According to MarketBeat.com, Paychex has a consensus rating of "Hold" and a consensus target price of $108.20.

Insider Transactions at Paychex

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 stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares of the company's stock, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the firm's stock in a transaction dated 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 position. The disclosure for this sale is available in the SEC filing. Insiders own 0.80% of the company's stock.

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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