Plato Investment Management Ltd Acquires New Position in Paychex, Inc. $PAYX

Plato Investment Management Ltd bought a new position in Paychex, Inc. (NASDAQ:PAYX) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 17,159 shares of the business services provider’s stock, valued at approximately $1,677,000.

Several other hedge funds and other institutional investors have also bought and sold shares of PAYX. Cornerstone Planning Group LLC raised its stake in shares of 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 acquiring an additional 268 shares in the last quarter. Hilton Head Capital Partners LLC bought a new stake in shares of Paychex in the 4th quarter worth approximately $31,000. Kingdom Financial Group LLC. purchased a new stake in shares of Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG boosted its stake in shares of Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock valued at $33,000 after purchasing an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC bought a new position in shares of Paychex during the 4th quarter valued at $34,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Down 2.9%

NASDAQ:PAYX opened at $118.54 on Tuesday. The firm has a market capitalization of $42.16 billion, a P/E ratio of 24.24 and a beta of 0.81. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The company has a fifty day moving average of $109.31 and a 200 day moving average of $99.43. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $141.19.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter last year, the firm earned $1.19 EPS. The company’s revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Tuesday, July 28th. Paychex’s dividend payout ratio is currently 97.34%.

Analyst Ratings Changes

Several analysts have weighed in on PAYX shares. Jefferies Financial Group boosted their price target on shares of Paychex from $105.00 to $120.00 and gave the stock a “hold” rating in a research note on Wednesday, August 12th. Cantor Fitzgerald reaffirmed an “underweight” rating and set a $107.00 price objective on shares of Paychex in a research note on Monday, July 20th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th. JPMorgan Chase & Co. boosted their target price on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research note on Thursday, June 25th. Finally, Morgan Stanley increased their target price on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. One research 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 given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $109.20.

Insider Activity

In related news, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was 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 in the company, valued at $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Robert L. Schrader sold 2,600 shares of the business’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is owned by company insiders.

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.