Mirae Asset Global Investments Co. Ltd. Boosts Stock Position in Paychex, Inc. $PAYX

Key Points

• Mirae Asset Global Investments increased its stake in Paychex, Inc. by 10.3%, now owning 434,739 shares valued at approximately $63.2 million.
• Several large investors, including Vanguard Group and Charles Schwab, have recently increased their positions in Paychex, indicating strong institutional interest.
• Paychex announced a quarterly dividend of $1.08, resulting in an annualized dividend yield of 3.5% and a payout ratio of 97.08%.

Mirae Asset Global Investments Co. Ltd. grew its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 10.3% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 434,739 shares of the business services provider's stock after buying an additional 40,632 shares during the period. Mirae Asset Global Investments Co. Ltd. owned 0.12% of Paychex worth $63,237,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in shares of Paychex by 0.9% during the 1st quarter. Vanguard Group Inc. now owns 31,807,843 shares of the business services provider's stock valued at $4,907,314,000 after buying an additional 286,818 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Paychex by 7.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock valued at $1,663,474,000 after buying an additional 737,542 shares in the last quarter. Northern Trust Corp lifted its position in shares of Paychex by 3.8% during the 1st quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock valued at $769,731,000 after buying an additional 181,628 shares in the last quarter. Invesco Ltd. lifted its position in shares of Paychex by 0.7% during the 1st quarter. Invesco Ltd. now owns 4,135,296 shares of the business services provider's stock valued at $637,993,000 after buying an additional 30,670 shares in the last quarter. Finally, Select Equity Group L.P. lifted its position in shares of Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock valued at $539,102,000 after buying an additional 1,738,372 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the sale, the chairman directly owned 446,917 shares in the company, valued at $64,878,940.89. This represents a 17.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the sale, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. The trade was a 13.14% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Robert W. Baird decreased their target price on Paychex from $153.00 to $148.00 and set a "neutral" rating on the stock in a research note on Wednesday. TD Cowen decreased their target price on Paychex from $140.00 to $126.00 and set a "hold" rating on the stock in a research note on Wednesday. Royal Bank Of Canada set a $165.00 target price on Paychex and gave the company a "sector perform" rating in a research note on Tuesday, June 24th. Wolfe Research decreased their target price on Paychex from $145.00 to $140.00 and set an "underperform" rating on the stock in a research note on Friday, September 26th. Finally, BMO Capital Markets decreased their target price on Paychex from $143.00 to $140.00 and set a "market perform" rating on the stock in a research note on Wednesday. Eleven analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $142.83.

Paychex Stock Performance

NASDAQ:PAYX opened at $123.42 on Friday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.28. Paychex, Inc. has a 1 year low of $119.02 and a 1 year high of $161.24. The stock's 50 day simple moving average is $136.13 and its two-hundred day simple moving average is $144.55. The company has a market cap of $44.38 billion, a price-to-earnings ratio of 27.73, a PEG ratio of 2.83 and a beta of 0.92.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.02. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The business had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter in the previous year, the company posted $1.16 EPS. The company's revenue was up 16.8% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, equities analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were issued a $1.08 dividend. The ex-dividend date was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.5%. Paychex's payout ratio is 97.08%.

Paychex Company Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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