Paychex, Inc. $PAYX Shares Purchased by Fulton Bank N.A.

Key Points

• Fulton Bank N.A. increased its Paychex stake by 147.1% in the first quarter, buying 16,588 additional shares and bringing its total holding to 27,861 shares worth about $2.57 million.
• Paychex reported solid quarterly results, posting EPS of $1.32 versus estimates of $1.31 and revenue of $1.61 billion, with revenue rising 12.5% year over year.
• The company raised its dividend to $1.19 per share quarterly, or $4.76 annualized, yielding about 4.6%; meanwhile, the stock was trading up 4.5% at $102.71 and analysts currently have an average “Hold” rating.

Fulton Bank N.A. lifted its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 147.1% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 27,861 shares of the business services provider's stock after buying an additional 16,588 shares during the period. Fulton Bank N.A.'s holdings in Paychex were worth $2,567,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of PAYX. Brighton Jones LLC grew its holdings in Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock worth $801,000 after acquiring an additional 1,190 shares during the period. Bison Wealth LLC raised its position in Paychex by 3.0% in the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after acquiring an additional 117 shares in the last quarter. Woodline Partners LP acquired a new stake in Paychex in the 1st quarter valued at about $3,333,000. NewEdge Advisors LLC boosted its position in shares of Paychex by 3.2% during the 2nd quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider's stock valued at $5,976,000 after purchasing an additional 1,290 shares in the last quarter. Finally, Sei Investments Co. boosted its position in shares of Paychex by 47.1% during the 2nd quarter. Sei Investments Co. now owns 156,680 shares of the business services provider's stock valued at $22,790,000 after purchasing an additional 50,169 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Trading Up 4.5%

Paychex stock opened at $102.71 on Thursday. The company has a 50 day moving average price of $96.09 and a 200 day moving average price of $98.77. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11. 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 $36.80 billion, a price-to-earnings ratio of 21.00 and a beta of 0.83.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results 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 company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company's revenue was up 12.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Research analysts forecast that Paychex, Inc. will post 5.97 EPS for the current year.

Paychex Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were paid a $1.19 dividend. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $4.76 annualized dividend and a yield of 4.6%. This is an increase from Paychex's previous quarterly dividend of $1.08. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Wall Street Analyst Weigh In

A number of analysts recently commented on PAYX shares. BMO Capital Markets boosted their target price on shares of Paychex to $52.00 and gave the stock an "outperform" rating in a report on Thursday, March 26th. Argus upgraded shares of Paychex to a "strong-buy" rating in a report on Friday, March 27th. Jefferies Financial Group dropped their price target on Paychex from $110.00 to $105.00 and set a "hold" rating on the stock in a report on Thursday, March 26th. Stifel Nicolaus increased their price objective on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. Finally, Guggenheim initiated coverage on Paychex in a research note on Thursday, March 19th. They set a "neutral" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, Paychex presently has an average rating of "Hold" and an average price target of $105.80.

Insider Transactions at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction dated 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 sale, the director directly 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 legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.80% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.