Saudi Central Bank Purchases 10,647 Shares of Paychex, Inc. $PAYX

Saudi Central Bank raised its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 89.3% in the 2nd quarter, HoldingsChannel reports. The institutional investor owned 22,572 shares of the business services provider’s stock after purchasing an additional 10,647 shares during the quarter. Saudi Central Bank’s holdings in Paychex were worth $2,220,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the company. XXEC Inc. bought a new position in shares of Paychex during the second quarter valued at about $1,123,016,000. BlackRock Inc. bought a new stake in shares of Paychex in the second quarter worth about $2,728,970,000. Capital International Investors increased its holdings in Paychex by 59.1% during 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 period. Bank of America Corp DE purchased a new position in Paychex during the 2nd quarter valued at about $434,061,000. Finally, Federated Hermes Inc. raised its position in Paychex by 4,141.2% during the 4th 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 last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Price Performance

Shares of Paychex stock opened at $121.71 on Tuesday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $138.19. The firm has a market cap of $43.29 billion, a price-to-earnings ratio of 24.89, a PEG ratio of 2.55 and a beta of 0.82. The company has a 50-day moving average of $116.94 and a 200 day moving average of $102.22. 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 (NASDAQ:PAYX) last posted its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping the consensus estimate of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. Paychex’s quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is currently 97.34%.

Analysts Set New Price Targets

Several equities research analysts have weighed in on PAYX shares. Stephens began coverage on Paychex in a report on Friday. They issued an “equal weight” rating and a $132.00 price objective for the company. Cantor Fitzgerald reissued an “underweight” rating and set a $107.00 target price on shares of Paychex in a research note on Monday, July 20th. Citigroup upped their target price on Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, July 30th. UBS Group raised their price target on Paychex from $105.00 to $115.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Finally, 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. One equities 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 issued a Sell rating to the stock. According to data from MarketBeat, Paychex has a consensus rating of “Hold” and a consensus target price of $111.00.

Insider Buying and Selling

In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% 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, 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 value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% 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.