SEB Asset Management AB Takes Position in Paychex, Inc. $PAYX

Key Points

• SEB Asset Management AB opened a new position in Paychex during the first quarter, buying 133,287 shares worth about $12.3 million. Other institutional investors also increased or initiated stakes, and institutions now own 83.47% of the company.
• Paychex reported better-than-expected quarterly results, with EPS of $1.32 versus $1.31 expected and revenue of $1.61 billion versus $1.60 billion estimated. Revenue rose 12.5% year over year, and the company provided FY 2027 guidance of 5.90–6.01 EPS.
• The company also announced a quarterly dividend of $1.19 per share, implying a 4.1% annual yield. Meanwhile, Wall Street’s view is mixed: the consensus rating is Hold, though Citigroup recently upgraded the stock to Buy.

SEB Asset Management AB purchased a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 133,287 shares of the business services provider's stock, valued at approximately $12,278,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Swiss National Bank grew its stake in Paychex by 6.8% during the first quarter. Swiss National Bank now owns 948,100 shares of the business services provider's stock valued at $87,339,000 after acquiring an additional 60,500 shares in the last quarter. Aurora Investment Counsel purchased a new stake in Paychex in the 1st quarter worth $2,196,000. Ceera Investments LLC boosted its holdings in shares of Paychex by 66.2% during the 1st quarter. Ceera Investments LLC now owns 32,347 shares of the business services provider's stock valued at $2,980,000 after purchasing an additional 12,887 shares during the last quarter. Clifford Swan Investment Counsel LLC boosted its holdings in shares of Paychex by 34.4% during the 1st quarter. Clifford Swan Investment Counsel LLC now owns 9,639 shares of the business services provider's stock valued at $888,000 after purchasing an additional 2,469 shares during the last quarter. Finally, Ranch Capital Advisors Inc. grew its position in shares of Paychex by 2.1% during the first quarter. Ranch Capital Advisors Inc. now owns 16,816 shares of the business services provider's stock valued at $1,549,000 after purchasing an additional 353 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insider Transactions at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on 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 directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.80% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on PAYX. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Paychex in a research note on Friday, April 24th. Wells Fargo & Company cut their target price on shares of Paychex from $116.00 to $95.00 and set an "underweight" rating for the company in a report on Thursday, March 26th. Citigroup upgraded shares of Paychex from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $99.00 to $140.00 in a research report on Monday, June 15th. Stephens decreased their price target on shares of Paychex from $125.00 to $105.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 26th. Finally, Jefferies Financial Group lowered their price objective on shares of Paychex from $110.00 to $105.00 and set a "hold" rating for the company in a research report on Thursday, March 26th. One equities research 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 assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $106.40.

Paychex Trading Up 0.7%

PAYX opened at $115.20 on Tuesday. 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 stock's fifty day moving average is $100.48 and its two-hundred day moving average is $98.29. The company has a market capitalization of $41.28 billion, a P/E ratio of 23.56 and a beta of 0.84. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. The business had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Dividend Announcement

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

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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