Pallas Capital Advisors LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Pallas Capital Advisors bought 12,985 Paychex shares worth approximately $1.28 million in the second quarter, while institutional investors collectively own 83.47% of the company.
• Analysts remain cautious, with Paychex holding a consensus “Hold” rating and an average price target of $109.20, despite several firms recently raising their targets.
• Paychex reported quarterly revenue growth of 12.5% and slightly exceeded earnings estimates, while declaring a quarterly dividend of $1.19 per share, equivalent to a 4.0% annual yield.

Pallas Capital Advisors LLC purchased a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 12,985 shares of the business services provider's stock, valued at approximately $1,277,000.

Several other hedge funds also recently made changes to their positions in PAYX. Cornerstone Planning Group LLC lifted its holdings in Paychex by 957.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock worth $30,000 after purchasing an additional 268 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new position in Paychex during the 4th quarter valued at about $31,000. Kingdom Financial Group LLC. purchased a new position in Paychex during the 4th quarter valued at about $33,000. Leonteq Securities AG increased its position in shares of Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after buying an additional 347 shares during the period. Finally, Acumen Wealth Advisors LLC purchased a new stake in shares of Paychex in the fourth quarter worth about $34,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

PAYX has been the subject of several recent analyst reports. Citigroup boosted their price objective on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Stifel Nicolaus raised their price target on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a report on Wednesday, June 17th. UBS Group boosted their price target on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Jefferies Financial Group increased their price objective on Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. Finally, Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. One 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 given a Sell rating to the company's stock. According to MarketBeat, Paychex presently has an average rating of "Hold" and a consensus target price of $109.20.

Insider Buying and Selling at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction 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 owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by company insiders.

Paychex Stock Up 1.2%

Shares of NASDAQ:PAYX opened at $119.93 on Wednesday. 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 firm has a market capitalization of $42.66 billion, a PE ratio of 24.53 and a beta of 0.81. The firm has a fifty day moving average of $109.70 and a 200 day moving average of $99.56. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data 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 return on equity of 50.90% and a net margin of 27.03%.The company had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period last year, the firm posted $1.19 EPS. Paychex's revenue for the quarter was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts anticipate that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be paid a $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.0%. Paychex's dividend payout ratio is 97.34%.

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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