PCM Encore LLC Takes $595,000 Position in Paychex, Inc. $PAYX

PCM Encore LLC bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 6,047 shares of the business services provider’s stock, valued at approximately $595,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. raised its stake 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 valued at $4,750,669,000 after acquiring an additional 4,583,157 shares during the last quarter. Capital International Investors grew its stake in shares of Paychex by 59.1% in 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 purchasing an additional 11,243,295 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Paychex in the 2nd quarter valued at approximately $2,728,970,000. State Street Corp grew its stake in shares of Paychex by 1.6% in the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock valued at $1,569,218,000 after purchasing an additional 216,045 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Paychex by 2.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock valued at $1,295,698,000 after purchasing an additional 263,152 shares during the period. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Stock Performance

NASDAQ PAYX opened at $122.91 on Friday. The stock has a market capitalization of $43.72 billion, a price-to-earnings ratio of 25.14 and a beta of 0.81. The business’s 50 day moving average is $110.60 and its two-hundred day moving average is $99.84. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $141.19. 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 posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the firm earned $1.19 EPS. The company’s quarterly 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. Research analysts expect that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be given a $1.19 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 annualized dividend and a yield of 3.9%. Paychex’s dividend payout ratio is presently 97.34%.

Insiders Place Their Bets

In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the firm’s stock in a transaction on Monday, July 20th. The stock was 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 owned 18,547 shares of the company’s stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the sale, the director owned 67,364 shares in the company, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

PAYX has been the subject of several analyst reports. Citigroup upped their price target on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Stifel Nicolaus lifted their price objective on shares of Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research report on Wednesday, June 17th. Weiss Ratings raised shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. Cantor Fitzgerald restated an “underweight” rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. Finally, Morgan Stanley raised their target price 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. One equities research 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average 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.