Public Employees Retirement System of Ohio Acquires Shares of 95,156 Paychex, Inc. $PAYX

Key Points

• Public Employees Retirement System of Ohio acquired 95,156 Paychex shares worth approximately $9.36 million, while institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion, up 12.5% year over year, and EPS of $1.32, narrowly exceeding analyst expectations. The company also pays an annualized dividend of $4.76 per share, yielding about 3.7%.
• Analyst sentiment remains mixed: Paychex has a consensus “Hold” rating and an average price target of $109.20, below its reported share price of $127.34. Two company insiders also recently sold shares.

Public Employees Retirement System of Ohio bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 95,156 shares of the business services provider's stock, valued at approximately $9,357,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Hilton Head Capital Partners LLC purchased a new position in Paychex during the fourth quarter worth approximately $31,000. Cornerstone Planning Group LLC grew its holdings in Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after buying an additional 268 shares in the last quarter. Kingdom Financial Group LLC. acquired a new stake in shares of Paychex in the 4th quarter worth $33,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Paychex in the 4th quarter worth $34,000. Finally, Wealth Watch Advisors INC purchased a new position in shares of Paychex during the 3rd quarter worth $42,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director owned 67,364 shares in the company, 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 Securities & Exchange Commission, which is accessible through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the business's stock in a transaction that occurred 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 sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company's stock.

Paychex Stock Performance

NASDAQ PAYX opened at $127.34 on Tuesday. The stock has a fifty day simple moving average of $114.39 and a 200-day simple moving average of $101.17. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The stock has a market cap of $45.29 billion, a PE ratio of 26.04 and a beta of 0.81. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $139.53.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data 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. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the firm earned $1.19 EPS. Paychex'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. Equities analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were paid a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex's payout ratio is 97.34%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on PAYX shares. TD Cowen boosted their price target on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research report on Monday, June 8th. 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 research report on Wednesday, June 17th. JPMorgan Chase & Co. lifted their target price on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Morgan Stanley boosted their target price on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. Finally, Citigroup increased their price target 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. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, 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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