Vise Technologies Inc. Takes $1.51 Million Position in Paychex, Inc. $PAYX

Key Points

• Vise Technologies purchased 15,408 Paychex shares worth approximately $1.51 million, joining other institutional investors that collectively own 83.47% of the company.
• 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 declared a quarterly dividend of $1.19 per share, representing a 3.8% annualized yield.
• Despite the strong earnings performance, analyst sentiment remains cautious: Paychex has a consensus “Hold” rating and an average price target of $109.20, below its reported trading price of $124.47.

Vise Technologies Inc. purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 15,408 shares of the business services provider's stock, valued at approximately $1,515,000.

A number of other institutional investors and hedge funds have also modified their holdings of PAYX. Vanguard Group Inc. lifted its stake in 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. Danske Bank A S grew 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 worth $23,035,000 after buying an additional 25,184 shares during the period. Comerica Bank grew its position in shares of Paychex by 10.4% during the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock worth $13,653,000 after buying an additional 11,497 shares during the period. Truist Financial Corp increased its stake in shares of Paychex by 33.3% in the 4th quarter. Truist Financial Corp now owns 208,150 shares of the business services provider's stock valued at $23,350,000 after acquiring an additional 51,982 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. bought a new stake in shares of Paychex in the 2nd quarter valued at about $7,296,000. 83.47% of the stock is owned by institutional investors.

Paychex Trading Up 1.3%

NASDAQ:PAYX opened at $124.47 on Friday. The company has a market cap of $44.27 billion, a P/E ratio of 25.45 and a beta of 0.81. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $141.19. The business has a 50 day moving average price of $111.08 and a two-hundred day moving average price of $100.01. 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 (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period last year, the company earned $1.19 earnings per share. The firm's revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

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

Insider Transactions at Paychex

In other 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 value of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on PAYX. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. TD Cowen upped their target price on shares of Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a research note on Monday, June 8th. UBS Group increased their target price on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Stifel Nicolaus increased their target price on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Wednesday, June 17th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research report on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $109.20.

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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