Westpac Banking Corp Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Westpac Banking Corp acquired 14,295 Paychex shares in the second quarter, valued at approximately $1.4 million. Institutional investors and hedge funds collectively own 83.47% of the company.
• Analyst sentiment remains mixed, with Paychex receiving an average rating of “Hold” and a consensus price target of $109.20. Recent targets range from $105 to $150.
• Paychex exceeded quarterly earnings and revenue expectations, reporting $1.32 in EPS and $1.61 billion in revenue, while revenue grew 12.5% year over year. The company also declared a quarterly dividend of $1.19 per share, representing a 3.8% annualized yield.

Westpac Banking Corp acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 14,295 shares of the business services provider's stock, valued at approximately $1,406,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. increased its position in Paychex by 12.1% during the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after buying an additional 4,583,157 shares during the period. Danske Bank A S boosted its position in shares of Paychex by 14.0% in the fourth 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. Comerica Bank boosted its position in shares of Paychex by 10.4% in the fourth 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 during the period. Truist Financial Corp grew its stake in shares of Paychex by 33.3% in the fourth 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 in the last quarter. Finally, Oppenheimer Asset Management Inc. acquired a new position in shares of Paychex in the second quarter valued at about $7,296,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently commented on PAYX shares. Stifel Nicolaus raised their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research report on Wednesday, June 17th. JPMorgan Chase & Co. boosted their price objective on shares of Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a report on Thursday, June 25th. Weiss Ratings upgraded shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Cantor Fitzgerald reiterated an "underweight" rating and issued a $107.00 price target on shares of Paychex in a research note on Monday, July 20th. Finally, Citigroup raised their price objective on Paychex from $140.00 to $150.00 and gave the stock 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 issued a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, Paychex currently has an average rating of "Hold" and a consensus target price of $109.20.

Paychex Price Performance

PAYX stock opened at $124.47 on Friday. The company's 50-day moving average price is $111.08 and its two-hundred day moving average price is $100.01. The firm has a market cap of $44.27 billion, a P/E ratio of 25.45 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. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.19.

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 for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. The company had revenue of $1.61 billion during 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%. The firm's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

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

Insider Buying and Selling at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction on 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 transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is owned by corporate insiders.

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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