PCM Encore LLC Makes New Investment in Paychex, Inc. $PAYX

PCM Encore LLC acquired a new stake in Paychex, Inc. (NASDAQ:PAYX) during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 6,047 shares of the business services provider’s stock, valued at approximately $595,000.

A number of other hedge funds and other institutional investors have also modified their holdings of PAYX. Vanguard Group Inc. grew its stake in shares of Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. Capital International Investors raised its stake in 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 buying an additional 11,243,295 shares in the last quarter. BlackRock Inc. acquired a new stake in Paychex in the second quarter valued at $2,728,970,000. State Street Corp lifted its holdings in Paychex by 1.6% during the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock worth $1,569,218,000 after buying an additional 216,045 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Paychex by 2.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock worth $1,295,698,000 after buying an additional 263,152 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Citigroup boosted their target price on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Morgan Stanley upped 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. Finally, Jefferies Financial Group increased their price target on shares of Paychex from $105.00 to $120.00 and gave the company a “hold” rating in a research note on Wednesday, August 12th. One 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 assigned a Sell rating to the stock. According to data from MarketBeat, Paychex has an average rating of “Hold” and a consensus price target of $109.20.

Paychex Stock Performance

NASDAQ PAYX opened at $122.91 on Friday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $141.19. The company has a market capitalization of $43.72 billion, a PE ratio of 25.14 and a beta of 0.81. The company has a fifty day moving average of $110.60 and a two-hundred day moving average of $99.84.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping 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 company had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter last year, the company posted $1.19 earnings per share. The business’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. As a group, analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

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

Insider Activity at Paychex

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the business’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 completion of the sale, the director owned 67,364 shares in the company, 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 filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction that occurred 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 sale, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company’s stock.

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.