Mitsubishi UFJ Asset Management Co. Ltd. Purchases New Stake in Paychex, Inc. $PAYX

Key Points

• Mitsubishi UFJ Asset Management acquired 810,344 Paychex shares worth approximately $79.7 million, giving it a 0.23% stake. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations, reporting $1.32 in EPS and $1.61 billion in revenue, with revenue rising 12.5% year over year. The company projects fiscal 2027 EPS of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19, equivalent to $4.76 annually and a 4.0% yield. Analysts remain cautious, with an overall “Hold” rating and an average price target of $109.20.

Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 810,344 shares of the business services provider's stock, valued at approximately $79,682,000. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.23% of Paychex at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Capital International Investors increased its holdings in shares of Paychex by 59.1% in the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider's stock valued at $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. Vanguard Group Inc. boosted its holdings in 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 buying an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. grew its position in 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 buying an additional 2,352,423 shares during the period. Norges Bank acquired a new position in Paychex during the fourth quarter worth about $257,699,000. Finally, Bank of New York Mellon Corp purchased a new position in Paychex in the second quarter valued at about $193,555,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Stock Performance

NASDAQ PAYX opened at $119.93 on Wednesday. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $141.19. The stock has a market cap of $42.66 billion, a price-to-earnings ratio of 24.53 and a beta of 0.81. The business has a fifty day moving average of $109.70 and a 200-day moving average of $99.56. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business's revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, 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. Shareholders of record on Tuesday, July 28th will be issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio is 97.34%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Stifel Nicolaus lifted their price target on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. Cantor Fitzgerald reissued an "underweight" rating and issued a $107.00 price objective on shares of Paychex in a research note on Monday, July 20th. TD Cowen increased their price objective on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research note on Monday, June 8th. Finally, JPMorgan Chase & Co. raised their target price on shares of Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a report on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $109.20.

Insider Activity

In other news, Director Joseph M. Tucci sold 3,907 shares of the business's stock in a transaction that occurred 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 transaction, the director owned 67,364 shares of the company's stock, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by company 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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