Rakuten Investment Management Inc. Invests $8.03 Million in Paychex, Inc. $PAYX

Key Points

• Rakuten Investment Management purchased 80,464 Paychex shares during the second quarter, worth approximately $8.03 million. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly revenue of $1.61 billion and earnings of $1.32 per share, slightly exceeding analyst expectations; revenue increased 12.5% year over year.
• Paychex pays an annualized dividend of $4.76 per share, yielding about 3.7%. Analysts maintain a consensus “Hold” rating, with an average price target of $109.20 versus the reported share price of $127.04.

Rakuten Investment Management Inc. bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 80,464 shares of the business services provider's stock, valued at approximately $8,031,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC raised its holdings in shares of Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock worth $30,000 after purchasing an additional 268 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Paychex during the 4th quarter worth about $31,000. Kingdom Financial Group LLC. purchased a new stake in shares of Paychex during the 4th quarter worth about $33,000. Leonteq Securities AG increased its position in 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 purchasing an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC acquired a new stake in Paychex during the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Up 0.4%

Shares of NASDAQ PAYX opened at $127.04 on Friday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $139.53. The firm has a market cap of $45.19 billion, a price-to-earnings ratio of 25.98 and a beta of 0.81. 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 stock's 50-day simple moving average is $113.76 and its 200-day simple moving average is $100.95.

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 for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same quarter last year, the firm earned $1.19 EPS. Paychex's quarterly 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, equities analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

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

Insider Buying and Selling at Paychex

In other news, CFO Robert L. Schrader sold 2,600 shares of the business's stock in a transaction dated 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 owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the company'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 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. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

PAYX has been the topic of a number of recent research reports. Cantor Fitzgerald reaffirmed an "underweight" rating and set a $107.00 price target on shares of Paychex in a research report on Monday, July 20th. Jefferies Financial Group raised their target price on shares of Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a research note on Wednesday, August 12th. Morgan Stanley lifted 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. JPMorgan Chase & Co. upped 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. Finally, UBS Group increased their price target on Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $109.20.

About Paychex

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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