United Services Automobile Association Takes $1.09 Million Position in Paychex, Inc. $PAYX

Key Points

• The United Services Automobile Association invested $1.09 million in Paychex, Inc., acquiring 7,215 shares of the company during the first quarter of the year.
• Paychex recently declared a quarterly dividend of $1.08 per share, representing an annualized yield of 3.2% with a dividend payout ratio of 94.53%.
• Institutional investors hold 83.47% of Paychex's stock, indicating strong confidence from large market players in the company's business model and performance.

United Services Automobile Association purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 7,215 shares of the business services provider's stock, valued at approximately $1,090,000.

Other institutional investors have also added to or reduced their stakes in the company. Robeco Institutional Asset Management B.V. grew its holdings in Paychex by 118.5% during the 1st quarter. Robeco Institutional Asset Management B.V. now owns 136,876 shares of the business services provider's stock valued at $21,117,000 after buying an additional 74,245 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Paychex by 32.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 119,291 shares of the business services provider's stock valued at $18,404,000 after buying an additional 29,320 shares in the last quarter. MWA Asset Management grew its holdings in Paychex by 6.5% during the 1st quarter. MWA Asset Management now owns 4,269 shares of the business services provider's stock valued at $659,000 after buying an additional 262 shares in the last quarter. Fifth Third Wealth Advisors LLC grew its holdings in Paychex by 15.1% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 6,419 shares of the business services provider's stock valued at $990,000 after buying an additional 843 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. grew its holdings in Paychex by 7.1% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 7,607 shares of the business services provider's stock valued at $1,174,000 after buying an additional 502 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Trading Down 0.3%

Shares of PAYX stock traded down $0.35 on Friday, reaching $135.11. 1,305,369 shares of the company's stock were exchanged, compared to its average volume of 1,876,443. Paychex, Inc. has a 52 week low of $131.83 and a 52 week high of $161.24. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. The stock has a market capitalization of $48.59 billion, a PE ratio of 29.56, a P/E/G ratio of 3.10 and a beta of 0.91. The company's fifty day simple moving average is $140.44 and its 200 day simple moving average is $146.55.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The firm had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period last year, the company earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. As a group, analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, July 21st were given a dividend of $1.08 per share. The ex-dividend date of this dividend was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a yield of 3.2%. Paychex's payout ratio is 94.53%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on PAYX shares. BMO Capital Markets started coverage on Paychex in a research note on Thursday, July 10th. They issued a "market perform" rating and a $160.00 price objective for the company. Jefferies Financial Group set a $140.00 price objective on Paychex and gave the company a "hold" rating in a research note on Thursday, June 26th. Stifel Nicolaus lowered their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research note on Thursday, June 26th. UBS Group lowered their price objective on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research note on Thursday, June 26th. Finally, Morgan Stanley lowered their price objective on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Friday, June 27th. Ten investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $149.70.

Insiders Place Their Bets

In other Paychex news, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the completion of the sale, the chief executive officer directly owned 81,755 shares of the company's stock, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total value of $14,157,849.42. Following the sale, the chairman directly owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.80% of the company's stock.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.