Hsbc Holdings PLC Increases Stake in Paychex, Inc. $PAYX

Hsbc Holdings PLC lifted its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 12.6% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 814,857 shares of the business services provider's stock after buying an additional 91,358 shares during the quarter. Hsbc Holdings PLC owned approximately 0.23% of Paychex worth $80,083,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in PAYX. Brighton Jones LLC raised its holdings in shares of Paychex by 26.3% in the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after purchasing an additional 1,190 shares in the last quarter. Bison Wealth LLC grew its stake in shares of Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after purchasing an additional 117 shares in the last quarter. Woodline Partners LP purchased a new position in Paychex in the first quarter valued at $3,333,000. NewEdge Advisors LLC raised its stake in Paychex by 3.2% in the second quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider's stock valued at $5,976,000 after buying an additional 1,290 shares in the last quarter. Finally, Sei Investments Co. raised its stake in Paychex by 47.1% in the second quarter. Sei Investments Co. now owns 156,680 shares of the business services provider's stock valued at $22,790,000 after buying an additional 50,169 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on PAYX shares. Stifel Nicolaus increased their price objective on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a report on Wednesday, June 17th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. UBS Group lifted their target price on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Morgan Stanley upped their price target on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. Finally, Citigroup increased their price target on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Paychex currently has an average rating of "Hold" and a consensus target price of $111.00.

Paychex Stock Performance

NASDAQ:PAYX opened at $121.71 on Monday. The firm has a market cap of $43.29 billion, a P/E ratio of 24.89, a PEG ratio of 2.55 and a beta of 0.82. 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's 50 day simple moving average is $116.50 and its 200-day simple moving average is $102.02. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $138.19.

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

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were paid a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 3.9%. The ex-dividend date was Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is 97.34%.

Insider Activity

In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the business'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 transaction of $299,234.00. Following the transaction, the chief financial officer 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 transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 value of $383,862.75. Following the transaction, the director directly owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is owned by insiders.

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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