iSAM Funds UK Ltd Lowers Holdings in Paychex, Inc. $PAYX

Key Points

• iSAM Funds UK Ltd cut its Paychex stake by 62.6% in the second quarter, selling 9,392 shares and retaining 5,600 shares valued at approximately $551,000. Institutional investors collectively own 83.47% of Paychex.
• Analysts remain generally cautious, with Paychex receiving an average “Hold” rating and a consensus price target of $109.20. Price targets were raised by several firms, including UBS, which lifted its target to $115.
• Paychex exceeded quarterly earnings and revenue estimates, reporting $1.32 in EPS and $1.61 billion in revenue, while revenue increased 12.5% year over year. The company also paid a $1.19 quarterly dividend, equivalent to a 3.8% yield.

iSAM Funds UK Ltd trimmed its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 62.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 5,600 shares of the business services provider's stock after selling 9,392 shares during the period. iSAM Funds UK Ltd's holdings in Paychex were worth $551,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently bought and sold shares of PAYX. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex during the 4th quarter worth approximately $31,000. Kingdom Financial Group LLC. purchased a new stake in Paychex during the fourth quarter worth $33,000. Leonteq Securities AG boosted its holdings in Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after buying an additional 347 shares in the last quarter. Field & Main Bank acquired a new stake in Paychex during the second quarter valued at $33,000. Finally, Acumen Wealth Advisors LLC purchased a new position in Paychex in the fourth quarter valued at $34,000. 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 weighed in on PAYX shares. Stifel Nicolaus upped their price objective on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research report on Wednesday, June 17th. Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. TD Cowen increased their price target on Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research report on Monday, June 8th. Finally, UBS Group boosted their price objective on Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. One investment 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 company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $109.20.

Paychex Stock Down 1.3%

PAYX stock opened at $124.00 on Thursday. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $138.19. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm has a 50-day simple moving average of $115.50 and a 200-day simple moving average of $101.61. The stock has a market capitalization of $44.10 billion, a P/E ratio of 25.36, a P/E/G ratio of 2.64 and a beta of 0.82.

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, beating 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 firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the company posted $1.19 EPS. Paychex's quarterly 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. Equities 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 was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were paid a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex's dividend payout ratio is currently 97.34%.

Insider Buying and Selling at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the firm'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 transaction, the director owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the firm's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by corporate insiders.

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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