Kestra Advisory Services LLC Cuts Position in Paychex, Inc. $PAYX

Kestra Advisory Services LLC trimmed its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 15.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 41,366 shares of the business services provider’s stock after selling 7,440 shares during the period. Kestra Advisory Services LLC’s holdings in Paychex were worth $3,811,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Capital International Investors lifted its holdings in shares of Paychex by 59.1% in the fourth 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 in the last quarter. Vanguard Group Inc. grew its holdings in 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 buying an additional 4,583,157 shares during the period. Federated Hermes Inc. grew its holdings in Paychex by 4,141.2% in the fourth quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock valued at $270,267,000 after purchasing an additional 2,352,423 shares during the period. Norges Bank purchased a new stake in Paychex in the fourth quarter valued at approximately $257,699,000. Finally, Voloridge Investment Management LLC acquired a new position in Paychex during the third quarter worth approximately $117,809,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the company’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 completion of the transaction, the director directly owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.80% of the stock is owned by corporate insiders.

Paychex Price Performance

PAYX opened at $114.39 on Friday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market capitalization of $40.98 billion, a P/E ratio of 23.39 and a beta of 0.84. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $148.11. The company has a 50-day moving average of $100.05 and a 200-day moving average of $98.39.

Paychex (NASDAQ:PAYX) last released 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. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the business posted $1.19 EPS. Paychex’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. Equities analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

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 issued a $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 4.2%. Paychex’s dividend payout ratio (DPR) is currently 97.34%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on PAYX. Morgan Stanley lifted their price target on shares of Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. Robert W. Baird cut their target price on Paychex from $148.00 to $125.00 and set a “neutral” rating on the stock in a research report on Thursday, March 26th. Stifel Nicolaus lifted their target price on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a report on Wednesday, June 17th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Finally, JPMorgan Chase & Co. raised their price objective on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $105.80.

About Paychex

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.