Paychex, Inc. $PAYX Shares Bought by NEOS Investment Management LLC

Key Points

• NEOS Investment Management increased its Paychex stake by 12.5% in the second quarter, purchasing 29,744 additional shares for a total holding of 267,050 shares valued at approximately $26.3 million. Institutional investors collectively own 83.47% of Paychex.
• Analyst sentiment remains mixed, with Paychex carrying a consensus “Hold” rating and an average price target of $111.00; recent targets range from $98 to $150.
• Paychex slightly beat quarterly earnings expectations, reporting $1.32 in EPS and $1.61 billion in revenue, while revenue rose 12.5% year over year. The company also pays a quarterly dividend of $1.19 per share, equating to a 3.9% yield.

NEOS Investment Management LLC raised its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 12.5% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 267,050 shares of the business services provider's stock after purchasing an additional 29,744 shares during the quarter. NEOS Investment Management LLC owned 0.08% of Paychex worth $26,259,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of PAYX. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex during the fourth quarter worth $31,000. Kingdom Financial Group LLC. acquired a new position in Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG increased its stake in Paychex by 2,669.2% in the 1st 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. Field & Main Bank purchased a new position in Paychex during the 2nd quarter worth $33,000. Finally, Acumen Wealth Advisors LLC purchased a new position in Paychex during the 4th quarter worth $34,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Activity at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of the firm's stock in a transaction that occurred on Monday, July 20th. The stock was 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 directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This trade represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 value of $383,862.75. Following the transaction, the director directly owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. TD Cowen lifted their target price on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a report on Monday, June 8th. Jefferies Financial Group increased their price target on shares of Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a report on Wednesday, August 12th. UBS Group raised their price objective 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. Citigroup lifted their price objective on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. boosted their target price on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, Paychex currently has a consensus rating of "Hold" and a consensus target price of $111.00.

Paychex Stock Performance

NASDAQ:PAYX opened at $121.71 on Friday. The firm's fifty day simple moving average is $116.50 and its 200-day simple moving average is $101.96. 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 stock has a market cap of $43.29 billion, a PE ratio of 24.89, a price-to-earnings-growth ratio of 2.62 and a beta of 0.82. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $138.19.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date was Tuesday, July 28th. Paychex's dividend payout ratio (DPR) 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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