PNC Financial Services Group Inc. Acquires 34,823 Shares of Paychex, Inc. $PAYX

Key Points

• PNC Financial Services increased its Paychex stake by 3.6% in the first quarter, adding 34,823 shares and bringing its total holding to 1,005,223 shares worth about $92.6 million.
• Paychex reported better-than-expected quarterly results, with EPS of $1.32 and revenue of $1.61 billion, both slightly ahead of analyst estimates. Revenue also rose 12.5% year over year.
• The company declared a quarterly dividend of $1.19 per share, implying a 4.3% annual yield, while analysts currently have a consensus Hold rating and an average price target of $107.53.

PNC Financial Services Group Inc. grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 3.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,005,223 shares of the business services provider's stock after buying an additional 34,823 shares during the quarter. PNC Financial Services Group Inc. owned 0.28% of Paychex worth $92,601,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in PAYX. Cornerstone Planning Group LLC raised its stake in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after acquiring an additional 268 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Paychex in the fourth quarter worth approximately $31,000. Kingdom Financial Group LLC. bought a new stake in shares of Paychex during the 4th quarter worth approximately $33,000. Leonteq Securities AG lifted its stake in shares of Paychex by 2,669.2% during the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after acquiring an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC purchased a new position in Paychex during the 4th quarter valued at $34,000. Institutional investors own 83.47% of the company's stock.

Paychex Trading Down 1.1%

Shares of NASDAQ PAYX opened at $110.74 on Thursday. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $148.11. The firm has a market cap of $39.39 billion, a PE ratio of 22.65 and a beta of 0.84. The business has a fifty day simple moving average of $101.26 and a two-hundred day simple moving average of $98.28. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business's revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.19 EPS. 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 firm also recently announced 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 annualized dividend and a yield of 4.3%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio is presently 97.34%.

Insider Buying and Selling

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 shares were 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 trade represents a 5.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.80% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on PAYX shares. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. TD Cowen boosted their target price on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research note on Monday, June 8th. Cantor Fitzgerald restated an "underweight" rating and issued a $107.00 price target on shares of Paychex in a report on Monday. BMO Capital Markets raised their price target on shares of Paychex to $52.00 and gave the stock an "outperform" rating in a research note on Thursday, March 26th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a report on Thursday, June 25th. One investment 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's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $107.53.

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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