State Street Corp Grows Stock Position in Paychex, Inc. $PAYX

Key Points

• State Street increased its Paychex position by 2.6% in the second quarter, adding 361,713 shares to own 14.4 million shares valued at approximately $1.42 billion. Institutional investors collectively own 83.47% of Paychex.
• Paychex reported quarterly EPS of $1.32, slightly above estimates, while revenue rose 12.5% year over year to $1.61 billion. The company also pays a quarterly dividend of $1.19 per share, representing a 4.2% yield.
• Analyst sentiment remains mixed, with the stock carrying an overall “Hold” rating and an average price target of $126.76. Meanwhile, Paychex shares opened at $114.53, below their 50-day moving average, and two insiders recently sold shares.

State Street Corp boosted its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 2.6% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 14,411,341 shares of the business services provider's stock after purchasing an additional 361,713 shares during the quarter. State Street Corp owned about 4.05% of Paychex worth $1,417,067,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Talon Private Wealth LLC purchased a new position in Paychex during the second quarter worth about $220,000. Rench Wealth Management Inc. boosted its position in shares of Paychex by 1.2% during the second quarter. Rench Wealth Management Inc. now owns 56,948 shares of the business services provider's stock worth $5,600,000 after buying an additional 650 shares during the period. Cidel Asset Management Inc. grew its stake in shares of Paychex by 15.2% in the second quarter. Cidel Asset Management Inc. now owns 2,529 shares of the business services provider's stock valued at $249,000 after buying an additional 333 shares in the last quarter. Pinnacle Wealth Management Advisory Group LLC grew its stake in shares of Paychex by 19.5% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 13,720 shares of the business services provider's stock valued at $1,349,000 after buying an additional 2,238 shares in the last quarter. Finally, Integrated Wealth Concepts LLC raised its holdings in shares of Paychex by 43.9% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 23,586 shares of the business services provider's stock valued at $2,319,000 after buying an additional 7,190 shares during the period. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insiders Place Their Bets

In related news, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value 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. This represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Joseph M. Tucci sold 3,907 shares of the 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 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 position. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is currently owned by insiders.

Paychex Stock Down 0.4%

Paychex stock opened at $114.53 on Wednesday. The stock has a 50 day moving average of $119.15 and a two-hundred day moving average of $104.05. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $130.64. The stock has a market capitalization of $40.74 billion, a price-to-earnings ratio of 23.42, a PEG ratio of 2.41 and a beta of 0.82. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22.

Paychex (NASDAQ:PAYX - Get Free Report) last issued 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 analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business's revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the business posted $1.19 earnings per share. As a group, research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date was Tuesday, July 28th. Paychex's payout ratio is presently 97.34%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on PAYX shares. TD Cowen lifted their target price on Paychex from $98.00 to $117.00 and gave the company a "hold" rating in a research report on Friday, September 11th. Guggenheim reissued a "neutral" rating on shares of Paychex in a research report on Thursday, September 17th. Stephens began coverage on shares of Paychex in a research note on Friday, September 4th. They issued an "equal weight" rating and a $132.00 price objective for the company. Citigroup lifted their price objective on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, Bank of America reduced their target price on shares of Paychex from $450.00 to $225.00 in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $126.76.

Paychex Profile

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers' compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.

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