Sumitomo Life Insurance Co. Invests $7.27 Million in Paychex, Inc. $PAYX

Sumitomo Life Insurance Co. purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 73,900 shares of the business services provider’s stock, valued at approximately $7,267,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Cornerstone Planning Group LLC raised its position in Paychex by 957.1% during the 4th 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 during the last quarter. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex in the 4th quarter worth $31,000. Kingdom Financial Group LLC. purchased a new stake in shares of Paychex in the fourth quarter valued at about $33,000. Leonteq Securities AG boosted its holdings in shares of 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 acquiring an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC acquired a new position in shares of Paychex during the fourth quarter worth about $34,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Performance

Shares of PAYX opened at $124.47 on Friday. The company has a 50-day simple moving average of $111.08 and a 200-day simple moving average of $100.01. 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 market capitalization of $44.27 billion, a PE ratio of 25.45 and a beta of 0.81. 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 data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate 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 revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Equities research analysts predict 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 will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date is Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is presently 97.34%.

Analyst Ratings Changes

Several research analysts recently issued reports on PAYX shares. TD Cowen increased their price target on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a report on Monday, June 8th. Morgan Stanley lifted their price objective on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. Citigroup boosted their target price on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Stifel Nicolaus increased their target price on Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a research note on Wednesday, June 17th. Finally, Jefferies Financial Group raised their price target on Paychex from $105.00 to $120.00 and gave the company a “hold” rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $109.20.

Insider Buying and Selling

In related news, Director Joseph M. Tucci sold 3,907 shares of the company’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 sale, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the firm’s 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 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 disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by company insiders.

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.