Resona Asset Management Co. Ltd. Has $10.65 Million Holdings in Paychex, Inc. $PAYX

Resona Asset Management Co. Ltd. raised its holdings in Paychex, Inc. (NASDAQ:PAYX) by 7.2% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 115,357 shares of the business services provider’s stock after acquiring an additional 7,757 shares during the quarter. Resona Asset Management Co. Ltd.’s holdings in Paychex were worth $10,646,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in PAYX. Isthmus Partners LLC bought a new position in shares of Paychex during the 1st quarter valued at $11,560,000. Seelaus Asset Management LLC increased its position in Paychex by 2.0% during the first quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider’s stock worth $503,000 after buying an additional 107 shares during the last quarter. Frank Rimerman Advisors LLC increased its position in Paychex by 1,037.8% during the first quarter. Frank Rimerman Advisors LLC now owns 23,324 shares of the business services provider’s stock worth $2,149,000 after buying an additional 21,274 shares during the last quarter. Renasant Bank bought a new position in Paychex during the first quarter valued at about $228,000. Finally, Eads & Heald Wealth Management acquired a new stake in shares of Paychex in the first quarter worth about $237,000. 83.47% of the stock is owned by institutional investors.

Key Stories 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

Insider Transactions at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares of the company’s stock, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.80% of the company’s stock.

Paychex Stock Performance

NASDAQ:PAYX traded up $1.28 during mid-day trading on Friday, hitting $107.54. 2,179,668 shares of the company’s stock traded hands, compared to its average volume of 3,609,491. The firm has a 50 day moving average of $98.16 and a two-hundred day moving average of $98.48. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $148.11. The firm has a market capitalization of $38.53 billion, a price-to-earnings ratio of 21.99 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22.

Paychex (NASDAQ:PAYX) last released its earnings results 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. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company’s revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were paid a $1.19 dividend. The ex-dividend date was Wednesday, May 13th. This is a positive change from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 annualized dividend and a dividend yield of 4.4%. Paychex’s dividend payout ratio is 97.34%.

Analysts Set New Price Targets

Several research firms recently weighed in on PAYX. Weiss Ratings restated a “hold (c-)” rating on shares of Paychex in a report on Friday, April 24th. Morgan Stanley increased their price target on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. UBS Group dropped their price target on shares of Paychex from $100.00 to $98.00 and set a “neutral” rating on the stock in a research report on Thursday, June 25th. Citigroup upgraded shares of Paychex from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $99.00 to $140.00 in a research note on Monday, June 15th. Finally, Robert W. Baird decreased their price objective 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. One investment 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. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $105.80.

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.