United Capital Financial Advisors LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• United Capital Financial Advisors initiated a Paychex position in the second quarter, purchasing 56,375 shares valued at approximately $5.54 million. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly earnings of $1.32 per share and revenue of $1.61 billion, slightly exceeding analyst expectations; revenue increased 12.5% year over year.
• Analysts maintain a consensus “Hold” rating with a $109.20 price target, while Paychex announced a quarterly dividend of $1.19 per share, representing a 3.8% annualized yield.

United Capital Financial Advisors LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 56,375 shares of the business services provider's stock, valued at approximately $5,543,000.

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

Insiders Place Their Bets

In related news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company's stock, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.80% of the company's stock.

Analyst Upgrades and Downgrades

PAYX has been the subject of several research reports. TD Cowen lifted their price target on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a report on Monday, June 8th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a research report on Thursday, May 28th. JPMorgan Chase & Co. increased their price objective 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. Jefferies Financial Group raised their target price on shares of Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a report on Wednesday, August 12th. Finally, Citigroup lifted their target price on 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 assigned a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, Paychex has a consensus rating of "Hold" and a consensus price target of $109.20.

Paychex Stock Performance

Shares of PAYX opened at $126.48 on Friday. The firm has a market capitalization of $44.99 billion, a PE ratio of 25.87 and a beta of 0.81. 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 firm has a 50-day moving average price of $113.19 and a 200 day moving average price of $100.77. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $139.53.

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

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio is 97.34%.

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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