Paychex, Inc. $PAYX Stock Position Raised by Pacer Advisors Inc.

Key Points

• Pacer Advisors increased its Paychex stake by 773% in the first quarter, acquiring 1.17 million additional shares and ending with a 1.32 million-share position worth approximately $121.8 million. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly earnings of $1.32 per share and revenue of $1.61 billion, slightly exceeding estimates, while revenue grew 12.5% year over year. The company also announced a quarterly dividend of $1.19, equivalent to a 4.1% annualized yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $108.20; targets ranged from $105 to $150. Shares recently opened at $116.84, above the consensus target.

Pacer Advisors Inc. increased its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 773.0% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,321,663 shares of the business services provider's stock after acquiring an additional 1,170,277 shares during the quarter. Pacer Advisors Inc. owned approximately 0.37% of Paychex worth $121,752,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of the business. 44 Wealth Management LLC raised its holdings in shares of Paychex by 2.7% during the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock valued at $479,000 after purchasing an additional 86 shares in the last quarter. Smartleaf Asset Management LLC boosted its position in shares of Paychex by 3.5% in the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock valued at $381,000 after acquiring an additional 89 shares during the period. Greenleaf Trust boosted its holdings in Paychex by 1.7% in the 4th quarter. Greenleaf Trust now owns 5,834 shares of the business services provider's stock valued at $654,000 after purchasing an additional 95 shares during the period. Prosperity Consulting Group LLC raised its position in shares of Paychex by 1.4% during the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider's stock valued at $922,000 after buying an additional 100 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its position in shares of Paychex by 14.5% during the fourth quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider's stock valued at $90,000 after buying an additional 101 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $116.84 on Monday. 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 firm has a market cap of $41.56 billion, a P/E ratio of 23.89 and a beta of 0.81. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $146.83. The company's 50-day moving average price is $104.42 and its two-hundred day moving average price is $98.51.

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 for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the previous year, the firm posted $1.19 earnings per share. The company's revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 4.1%. The ex-dividend date is Tuesday, July 28th. Paychex's payout ratio is 97.34%.

Insider Buying and Selling at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the company's 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 transaction, the director 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 filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 value of $299,234.00. Following the completion of the transaction, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on PAYX. Citigroup lifted their price target on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday. Stifel Nicolaus raised their price objective on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Wednesday, June 17th. UBS Group lifted their target price 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. Morgan Stanley upped their target price 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. Finally, JPMorgan Chase & Co. increased their price target on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research report on Thursday, June 25th. 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 given a Sell rating to the company's stock. Based on data from MarketBeat, Paychex currently has a consensus rating of "Hold" and an average target price of $108.20.

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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