Saudi Central Bank Increases Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Saudi Central Bank increased its Paychex stake by 89.3% in the second quarter, bringing its holdings to 22,572 shares valued at approximately $2.22 million. Institutional investors collectively own 83.47% of PAYX.
• Paychex exceeded quarterly earnings expectations with $1.32 in EPS and $1.61 billion in revenue, up 12.5% year over year. The company also pays an annualized dividend of $4.76 per share, yielding about 3.9%.
• Analysts maintain a consensus “Hold” rating, with an average price target of $111, below the stock’s reported $121.71 price. Recent insider activity included stock sales by a director and the CFO.

Saudi Central Bank increased its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 89.3% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 22,572 shares of the business services provider's stock after acquiring an additional 10,647 shares during the quarter. Saudi Central Bank's holdings in Paychex were worth $2,220,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of PAYX. Hilton Head Capital Partners LLC bought a new position in Paychex in the 4th quarter valued at $31,000. Kingdom Financial Group LLC. bought a new position in shares of Paychex in the fourth quarter worth $33,000. Leonteq Securities AG raised its position in shares of Paychex by 2,669.2% in the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after buying an additional 347 shares in the last quarter. Field & Main Bank bought a new stake in Paychex during the second quarter valued at $33,000. Finally, Acumen Wealth Advisors LLC bought a new stake in Paychex during the fourth quarter valued at $34,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Price Performance

Shares of PAYX opened at $121.71 on Tuesday. The firm has a market cap of $43.29 billion, a P/E ratio of 24.89, a P/E/G ratio of 2.55 and a beta of 0.82. The stock has a 50 day simple moving average of $116.94 and a two-hundred day simple moving average of $102.22. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $138.19.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business's quarterly revenue was up 12.5% on a year-over-year basis. During the same period last year, the business earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts forecast 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 was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were given a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date was Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is presently 97.34%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on PAYX shares. JPMorgan Chase & Co. upped their target price on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Jefferies Financial Group boosted their price objective on Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a report on Wednesday, August 12th. Morgan Stanley raised 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, Stephens started coverage on shares of Paychex in a research report on Friday. They set an "equal weight" rating and a $132.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $111.00.

Insider Buying and Selling at Paychex

In other Paychex news, Director Joseph Tucci sold 3,907 shares of the business's stock in a transaction 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 directly owned 67,364 shares of the company's stock, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Robert Schrader sold 2,600 shares of the company's stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.80% of the company's stock.

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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