Global Retirement Partners LLC Takes $2.01 Million Position in Paychex, Inc. $PAYX

Key Points

• Global Retirement Partners acquired 20,401 Paychex shares in the second quarter, worth approximately $2.01 million. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations with $1.32 in EPS and $1.61 billion in revenue, up 12.5% year over year. The company also issued a quarterly dividend of $1.19 per share, equating to a 3.9% yield.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $109.20, below the reported share price of $122.02.

Global Retirement Partners LLC bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm bought 20,401 shares of the business services provider's stock, valued at approximately $2,006,000.

A number of other institutional investors have also made changes to their positions in the stock. Capital International Investors raised its holdings 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 acquiring an additional 11,243,295 shares during the period. Vanguard Group Inc. increased its stake in shares of Paychex by 12.1% during the fourth 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 during the period. Federated Hermes Inc. increased its position in Paychex by 4,141.2% during the 4th quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider's stock worth $270,267,000 after buying an additional 2,352,423 shares during the period. Norges Bank bought a new stake in Paychex in the 4th quarter valued at about $257,699,000. Finally, Bank of New York Mellon Corp acquired a new position in Paychex in the 2nd quarter valued at $193,555,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the company's stock in a transaction 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 transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.80% of the company's stock.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $122.02 on Monday. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $141.19. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The stock has a market cap of $43.40 billion, a PE ratio of 24.95 and a beta of 0.81. The stock's fifty day simple moving average is $108.92 and its two-hundred day simple moving average is $99.34.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors 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 of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is presently 97.34%.

Analyst Upgrades and Downgrades

PAYX has been the topic of several analyst reports. JPMorgan Chase & Co. increased their price target on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research report on Thursday, June 25th. UBS Group lifted their target price on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. TD Cowen upped their price target on Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research report on Monday, June 8th. Morgan Stanley increased their price objective on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 30th. Finally, Weiss Ratings raised shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. One equities research 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 company. According to data from MarketBeat, 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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