Handelsbanken Fonder AB Reduces Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Handelsbanken Fonder AB cut its Paychex stake by 8.2% in the second quarter, selling 10,009 shares and retaining 111,345 shares valued at approximately $10.95 million. Institutional investors collectively own 83.47% of Paychex.
• Paychex exceeded quarterly expectations, reporting $1.32 in earnings per share and $1.61 billion in revenue, with revenue up 12.5% year over year. The company issued fiscal 2027 EPS guidance of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19 per share, equal to a 3.8% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $109.20, below the stock’s reported $125.40 opening price.

Handelsbanken Fonder AB lessened its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 8.2% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 111,345 shares of the business services provider's stock after selling 10,009 shares during the quarter. Handelsbanken Fonder AB's holdings in Paychex were worth $10,949,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after purchasing an additional 4,583,157 shares during the last quarter. LBP AM SA increased its holdings in Paychex by 125.2% during the 4th quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock worth $4,545,000 after purchasing an additional 22,527 shares during the last quarter. Danske Bank A S raised its position in shares of Paychex by 14.0% in the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock valued at $23,035,000 after purchasing an additional 25,184 shares in the last quarter. Comerica Bank raised its position in shares of Paychex by 10.4% in the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after purchasing an additional 11,497 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Paychex by 5.5% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 469,790 shares of the business services provider's stock valued at $52,701,000 after buying an additional 24,336 shares during the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the sale, the director directly owned 67,364 shares in the company, valued at approximately $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 can be accessed through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $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. Company insiders own 0.80% of the company's stock.

Paychex Stock Performance

Paychex stock opened at $125.40 on Friday. The company has a market cap of $44.60 billion, a PE ratio of 25.64 and a beta of 0.81. The company has a fifty day moving average price of $108.49 and a two-hundred day moving average price of $99.23. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.19.

Paychex (NASDAQ:PAYX - Get Free Report) last issued 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. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the prior year, the company earned $1.19 earnings per share. The firm'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. Research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be paid a dividend of $1.19 per share. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 annualized dividend and a yield of 3.8%. Paychex's dividend payout ratio is 97.34%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Weiss Ratings raised shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Cantor Fitzgerald reiterated an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research note on Monday, July 20th. Stifel Nicolaus raised their price objective on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Wednesday, June 17th. UBS Group boosted 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. Finally, 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. 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 assigned a Sell rating to the stock. Based on data from MarketBeat, Paychex has an average rating of "Hold" and an average target price of $109.20.

Paychex Company 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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