Paychex, Inc. $PAYX Stock Position Lowered by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management cut its Paychex position by 67.3% in the second quarter, selling 306,662 shares and retaining 148,945 shares worth approximately $14.6 million. Institutional investors collectively own 83.47% of PAYX.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $108.20. Citigroup raised its target to $150 and maintained a “Buy” rating, while other firms largely maintained neutral or sell views.
• Paychex reported quarterly revenue of $1.61 billion and EPS of $1.32, slightly beating estimates, while revenue increased 12.5% year over year. The company declared a quarterly dividend of $1.19 per share, representing a 3.9% yield.

Assenagon Asset Management S.A. decreased its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 67.3% in the second quarter, according to its most recent 13F filing with the SEC. The firm owned 148,945 shares of the business services provider's stock after selling 306,662 shares during the period. Assenagon Asset Management S.A.'s holdings in Paychex were worth $14,646,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in PAYX. Vanguard Group Inc. boosted its position 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 valued at $4,750,669,000 after purchasing an additional 4,583,157 shares during the last quarter. LBP AM SA increased its position in Paychex by 125.2% in the 4th quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock worth $4,545,000 after purchasing an additional 22,527 shares during the last quarter. Danske Bank A S raised its stake in shares of Paychex by 14.0% during the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock worth $23,035,000 after purchasing an additional 25,184 shares in the last quarter. Tectonic Advisors LLC raised its stake in shares of Paychex by 17.4% during the 4th quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock worth $8,942,000 after purchasing an additional 11,805 shares in the last quarter. Finally, Comerica Bank lifted its holdings in shares of Paychex by 10.4% during the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after buying an additional 11,497 shares during the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, CFO Robert L. Schrader sold 2,600 shares of the firm'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 sale, the chief financial officer directly 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction dated Friday, June 26th. The stock was 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 in the company, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.80% of the company's stock.

Analyst Ratings Changes

Several brokerages recently commented on PAYX. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. 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 report on Tuesday, June 30th. Citigroup lifted their target price 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. TD Cowen boosted their target price on shares of Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research report on Monday, June 8th. Finally, Royal Bank Of Canada restated a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $108.20.

Paychex Stock Up 0.9%

PAYX opened at $121.18 on Tuesday. The business has a 50 day moving average price of $107.12 and a 200 day moving average price of $98.90. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $141.59. 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 cap of $43.10 billion, a P/E ratio of 24.78 and a beta of 0.81.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results 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. 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 the consensus estimate of $1.60 billion. During the same quarter last year, the company posted $1.19 earnings per share. The company'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. Research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio is 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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