Candriam S.C.A. Lowers Stock Position in Paychex, Inc. $PAYX

Candriam S.C.A. reduced its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 25,834 shares of the business services provider’s stock after selling 9,216 shares during the quarter. Candriam S.C.A.’s holdings in Paychex were worth $2,380,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Capital International Investors boosted 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 acquiring an additional 11,243,295 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after buying an additional 4,583,157 shares during the last quarter. Federated Hermes Inc. boosted its position in Paychex by 4,141.2% in the 4th quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock worth $270,267,000 after purchasing an additional 2,352,423 shares in the last quarter. Norges Bank purchased a new stake in Paychex during the fourth quarter worth $257,699,000. Finally, Voloridge Investment Management LLC acquired a new stake in shares of Paychex during the 3rd quarter valued at about $117,809,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Down 1.1%

NASDAQ:PAYX opened at $109.52 on Wednesday. The firm has a market cap of $39.24 billion, a P/E ratio of 22.40 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $148.11. The stock’s 50 day simple moving average is $98.86 and its 200-day simple moving average is $98.31.

Paychex (NASDAQ:PAYX) last issued its 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 return on equity of 50.90% and a net margin of 27.03%.The business had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the business posted $1.19 EPS. The company’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. Equities analysts anticipate that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were given a $1.19 dividend. This is an increase from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 annualized dividend and a dividend yield of 4.3%. The ex-dividend date was Wednesday, May 13th. Paychex’s dividend payout ratio (DPR) is currently 97.34%.

Insider Activity

In related news, Director Joseph M. Tucci sold 3,907 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the sale, the director 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.80% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on PAYX shares. JPMorgan Chase & Co. lifted their target price on shares of Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research report on Thursday, June 25th. BMO Capital Markets upped their target price on Paychex to $52.00 and gave the company an “outperform” rating in a report on Thursday, March 26th. Wells Fargo & Company dropped their price target on shares of Paychex from $116.00 to $95.00 and set an “underweight” rating for the company in a research note on Thursday, March 26th. Guggenheim began coverage on Paychex in a research report on Thursday, March 19th. They set a “neutral” rating for the company. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Paychex presently has a consensus rating of “Hold” and a consensus target price of $105.80.

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.