Paychex, Inc. $PAYX Shares Sold by Van ECK Associates Corp

Key Points

• Van ECK Associates reduced its Paychex stake by 11% in the second quarter, selling 8,568 shares and retaining 69,442 shares valued at approximately $6.83 million. Institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion and earnings of $1.32 per share, slightly beating estimates, while revenue increased 12.5% year over year. The company issued FY 2027 EPS guidance of $5.90–$6.01.
• Paychex paid a quarterly dividend of $1.19 per share, equivalent to an annualized $4.76 dividend and a 3.8% yield. Analysts maintain a consensus “Hold” rating with an average price target of $109.20, below the reported $124 share price.

Van ECK Associates Corp trimmed its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 11.0% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 69,442 shares of the business services provider's stock after selling 8,568 shares during the period. Van ECK Associates Corp's holdings in Paychex were worth $6,828,000 as of its most recent filing with the SEC.

Other large investors have also recently made changes to their positions in the company. Hilton Head Capital Partners LLC purchased a new stake in Paychex in the fourth quarter valued at approximately $31,000. Kingdom Financial Group LLC. acquired a new position in Paychex during the fourth quarter worth $33,000. Leonteq Securities AG boosted 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 worth $33,000 after buying an additional 347 shares during the period. Field & Main Bank purchased a new position in shares of Paychex during the second quarter worth $33,000. Finally, Acumen Wealth Advisors LLC acquired a new stake in shares of Paychex in the fourth quarter valued at $34,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Trading Down 1.3%

NASDAQ PAYX opened at $124.00 on Thursday. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $138.19. The firm has a 50 day moving average of $115.50 and a two-hundred day moving average of $101.61. 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 capitalization of $44.10 billion, a PE ratio of 25.36, a price-to-earnings-growth ratio of 2.64 and a beta of 0.82.

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. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates 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 last year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th were issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex's payout ratio is 97.34%.

Insider Transactions at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the company'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 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 position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This represents a 12.29% 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.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. TD Cowen boosted their price objective on Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a report on Monday, June 8th. Royal Bank Of Canada restated a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Stifel Nicolaus lifted their target price on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. UBS Group boosted their price target on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Morgan Stanley raised their price objective on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $109.20.

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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