Hsbc Holdings PLC Sells 47,759 Shares of Paychex, Inc. $PAYX

Key Points

• Hsbc Holdings PLC trimmed its Paychex stake in the first quarter, selling 47,759 shares and leaving it with 723,499 shares valued at about $66.7 million.
• Paychex reported better-than-expected quarterly results, with earnings per share of $1.32 and revenue of $1.61 billion, both slightly above analyst estimates. Revenue also rose 12.5% year over year.
• The company announced a quarterly dividend of $1.19 per share, implying a 4.2% annual yield, while analysts currently rate the stock a consensus “Hold” with an average price target of $105.80.

Hsbc Holdings PLC decreased its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 6.2% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 723,499 shares of the business services provider's stock after selling 47,759 shares during the period. Hsbc Holdings PLC owned approximately 0.20% of Paychex worth $66,716,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in PAYX. Capital International Investors lifted its holdings in 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 in the last quarter. Vanguard Group Inc. raised its position 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. raised its position in shares of Paychex by 4,141.2% during the fourth quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider's stock worth $270,267,000 after purchasing an additional 2,352,423 shares during the period. Norges Bank bought a new position in shares of Paychex during the 4th quarter valued at about $257,699,000. Finally, Voloridge Investment Management LLC acquired a new position in shares of Paychex in the 3rd quarter valued at approximately $117,809,000. Institutional investors own 83.47% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Stifel Nicolaus increased their target price on Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research note on Wednesday, June 17th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Paychex in a report on Friday, April 24th. Wells Fargo & Company reduced their price target on shares of Paychex from $116.00 to $95.00 and set an "underweight" rating for the company in a report on Thursday, March 26th. JPMorgan Chase & Co. increased their price objective 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. Finally, BMO Capital Markets boosted their price objective on shares of Paychex to $52.00 and gave the company an "outperform" rating in a research report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $105.80.

Insider Transactions at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.80% of the company's stock.

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $114.39 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. The stock has a 50 day moving average price of $100.05 and a 200 day moving average price of $98.28. The stock has a market capitalization of $40.98 billion, a PE ratio of 23.39 and a beta of 0.84. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11.

Paychex (NASDAQ:PAYX - Get Free Report) last posted 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 for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the previous year, the firm earned $1.19 EPS. The business's quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Tuesday, July 28th. Paychex's payout ratio is presently 97.34%.

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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