PNC Financial Services Group Inc. Increases Position in Paychex, Inc. $PAYX

PNC Financial Services Group Inc. lifted its stake in Paychex, Inc. (NASDAQ:PAYX) by 3.6% in the 1st quarter, HoldingsChannel reports. The fund owned 1,005,223 shares of the business services provider’s stock after purchasing an additional 34,823 shares during the quarter. PNC Financial Services Group Inc.’s holdings in Paychex were worth $92,601,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in PAYX. Vanguard Group Inc. boosted its position in Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock valued at $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. Capital International Investors raised its holdings 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 worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. State Street Corp lifted its position in shares of Paychex by 1.6% during the fourth quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock valued at $1,569,218,000 after buying an additional 216,045 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Paychex by 2.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock valued at $1,295,698,000 after buying an additional 263,152 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Paychex by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider’s stock valued at $1,093,958,000 after buying an additional 78,760 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Performance

PAYX opened at $110.74 on Thursday. The company has a market cap of $39.39 billion, a P/E ratio of 22.65 and a beta of 0.84. 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 firm’s 50-day moving average price is $101.26 and its 200-day moving average price is $98.28. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $148.11.

Paychex (NASDAQ:PAYX) last released its earnings results on Wednesday, June 24th. The business services provider reported $1.32 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 company had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the business earned $1.19 EPS. Paychex’s revenue for the quarter was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts anticipate that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be paid a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Tuesday, July 28th. Paychex’s payout ratio is presently 97.34%.

Wall Street Analysts Forecast Growth

PAYX has been the topic of a number of analyst reports. TD Cowen lifted their price objective on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a research report on Monday, June 8th. BMO Capital Markets raised their target price on shares of Paychex to $52.00 and gave the company an “outperform” rating in a research note on Thursday, March 26th. Stifel Nicolaus lifted their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a report on Wednesday, June 17th. Stephens reduced their price target on Paychex from $125.00 to $105.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 26th. Finally, Jefferies Financial Group decreased their price objective on Paychex from $110.00 to $105.00 and set a “hold” rating for the company in a report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $107.53.

Insider Buying and Selling at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the company’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 transaction, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. This represents a 5.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.80% of the stock is 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.