Van Cleef Asset Management Inc Has $21 Million Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Van Cleef Asset Management increased its Paychex stake by 10.3% in the first quarter, ending with 227,971 shares valued at about $21.0 million. Paychex now represents 2.3% of the firm’s holdings and its 13th-largest position.
• 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 expected. Revenue also rose 12.5% year over year.
• The company raised its quarterly dividend to $1.19 per share, or $4.76 annually, for a 4.4% yield. However, analysts remain cautious overall, with a consensus rating of Hold and an average target price of $105.80.

Van Cleef Asset Management Inc grew its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 10.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 227,971 shares of the business services provider's stock after buying an additional 21,330 shares during the period. Paychex makes up 2.3% of Van Cleef Asset Management Inc's holdings, making the stock its 13th biggest position. Van Cleef Asset Management Inc owned 0.06% of Paychex worth $21,001,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of PAYX. Vanguard Group Inc. boosted its stake in shares of Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after buying an additional 4,583,157 shares during the period. LBP AM SA increased its stake in Paychex by 125.2% during the 4th quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock worth $4,545,000 after acquiring an additional 22,527 shares during the period. Tectonic Advisors LLC raised its holdings in Paychex by 17.4% in the 4th quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock valued at $8,942,000 after acquiring an additional 11,805 shares in the last quarter. Comerica Bank raised its holdings in Paychex by 10.4% in the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after acquiring an additional 11,497 shares in the last quarter. Finally, Danske Bank A S lifted its position in shares of Paychex by 14.0% during the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock valued at $23,035,000 after acquiring an additional 25,184 shares during the period. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Buying and Selling at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction that occurred 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. This trade represents a 5.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.80% of the company's stock.

Paychex Price Performance

Shares of PAYX traded up $1.28 during midday trading on Friday, hitting $107.54. The company's stock had a trading volume of 2,179,668 shares, compared to its average volume of 3,609,491. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a one year low of $85.45 and a one year high of $148.11. The stock has a market capitalization of $38.53 billion, a price-to-earnings ratio of 21.99 and a beta of 0.84. The company's fifty day simple moving average is $98.16 and its two-hundred day simple moving average is $98.48.

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

Paychex Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.4%. This is an increase from Paychex's previous quarterly dividend of $1.08. The ex-dividend date of this dividend was Wednesday, May 13th. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Analyst Ratings Changes

Several research firms have recently issued reports on PAYX. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Robert W. Baird dropped their price target on Paychex from $148.00 to $125.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. TD Cowen increased their price objective on shares of Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research note on Monday, June 8th. Morgan Stanley increased their price objective on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. Finally, Guggenheim assumed coverage on shares of Paychex in a report on Thursday, March 19th. They issued a "neutral" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $105.80.

Key Headlines Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks Research lifted multiple earnings estimates for Paychex (PAYX), including FY2027 and FY2029, signaling improved profit expectations and a potentially supportive outlook for the stock.
• Positive Sentiment: Paychex was highlighted among the Nasdaq 100’s highest-yielding stocks, which may attract income-focused investors looking for defensive dividend names.
• Neutral Sentiment: Short-interest data showed no reported short interest, so there is no clear evidence of a meaningful bearish positioning shift in the shares.
• Negative Sentiment: A separate article said Paychex (PAYX) could be as much as 38% below fair value after removal from the Russell Growth Index, suggesting the recent move may be partly tied to index-related repricing and raising valuation concerns. Article Title

Paychex 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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