SEB Asset Management AB purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 133,287 shares of the business services provider’s stock, valued at approximately $12,278,000.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Capital International Investors grew its position in shares of Paychex by 59.1% during the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock valued at $3,395,583,000 after acquiring an additional 11,243,295 shares during the period. Vanguard Group Inc. increased its stake in shares of Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock valued at $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. raised its holdings in Paychex by 4,141.2% in the 4th quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock worth $270,267,000 after purchasing an additional 2,352,423 shares during the period. Norges Bank acquired a new position in Paychex in the 4th quarter worth about $257,699,000. Finally, Voloridge Investment Management LLC purchased a new position in Paychex during the third quarter worth approximately $117,809,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.
Insider Activity at Paychex
In related news, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.80% of the company’s stock.
Paychex Trading Up 0.7%
Paychex (NASDAQ:PAYX – Get Free Report) last issued its 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 quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Sell-side analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.
Paychex Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex’s payout ratio is presently 97.34%.
Analyst Ratings Changes
Several brokerages have commented on PAYX. BMO Capital Markets raised their price objective on Paychex to $52.00 and gave the company an “outperform” rating in a report on Thursday, March 26th. Argus upgraded Paychex to a “strong-buy” rating in a research report on Friday, March 27th. JPMorgan Chase & Co. increased their target price on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research report on Thursday, June 25th. Robert W. Baird cut their price target on shares of Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a report on Thursday, March 26th. Finally, TD Cowen upped their price objective on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a research report on Monday, June 8th. One research 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 given a Sell rating to the company’s stock. According to MarketBeat.com, Paychex has a consensus rating of “Hold” and a consensus price target of $106.40.
View Our Latest Stock Analysis on PAYX
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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