XXEC Inc. Makes New Investment in Paychex, Inc. $PAYX

XXEC Inc. purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 2nd quarter, Holdings Channel.com reports. The firm purchased 108,492,809 shares of the business services provider’s stock, valued at approximately $1,123,016,000. Paychex accounts for approximately 0.6% of XXEC Inc.’s investment portfolio, making the stock its 7th largest position. XXEC Inc. owned 0.31% of Paychex at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of PAYX. Cornerstone Planning Group LLC lifted its position in Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock worth $30,000 after buying an additional 268 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex during the 4th quarter worth about $31,000. Kingdom Financial Group LLC. purchased a new stake in Paychex in the 4th quarter valued at about $33,000. Leonteq Securities AG lifted its position in Paychex by 2,669.2% in the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock valued at $33,000 after buying an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC purchased a new position in Paychex during the fourth quarter worth about $34,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Up 1.3%

Shares of PAYX opened at $124.47 on Friday. The company’s 50-day simple moving average is $111.08 and its 200-day simple moving average is $100.01. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $141.19. The stock has a market capitalization of $44.27 billion, a PE ratio of 25.45 and a beta of 0.81.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be paid a $1.19 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 3.8%. Paychex’s payout ratio is 97.34%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. TD Cowen lifted their price target on shares of Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Royal Bank Of Canada restated a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th. UBS Group increased their price objective on shares of Paychex from $105.00 to $115.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their target price 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. Finally, JPMorgan Chase & Co. upped their price target on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a research note on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $109.20.

Insiders Place Their Bets

In related news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction 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 transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the business’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 transaction, 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. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by corporate insiders.

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.