Principal Financial Group Inc. Has $37.48 Million Holdings in Paychex, Inc. $PAYX

Principal Financial Group Inc. grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 4.3% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 406,885 shares of the business services provider’s stock after buying an additional 16,883 shares during the period. Principal Financial Group Inc.’s holdings in Paychex were worth $37,482,000 as of its most recent filing with the SEC.

Several other large investors also recently modified their holdings of PAYX. Vanguard Group Inc. increased its stake in shares of Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock valued at $4,750,669,000 after acquiring an additional 4,583,157 shares in the last quarter. Capital International Investors grew 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 during the period. State Street Corp grew its holdings in Paychex by 1.6% in the fourth quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock worth $1,569,218,000 after purchasing an additional 216,045 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Paychex by 2.3% in 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 purchasing an additional 263,152 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in Paychex by 0.8% in the fourth 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 purchasing an additional 78,760 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Down 0.3%

Shares of NASDAQ PAYX opened at $114.39 on Friday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The company has a 50-day moving average price of $100.05 and a 200-day moving average price of $98.39. The stock has a market capitalization of $40.98 billion, a P/E ratio of 23.39 and a beta of 0.84. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $148.11.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share 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 for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the business posted $1.19 EPS. The firm’s revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities research analysts forecast 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 $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.2%. Paychex’s dividend payout ratio is 97.34%.

Insider Buying and Selling at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the firm’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 transaction, the director 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.80% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Stephens cut their price objective on shares of Paychex from $125.00 to $105.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 26th. TD Cowen boosted their target price on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Robert W. Baird dropped their price target on Paychex from $148.00 to $125.00 and set a “neutral” rating on the stock in a research note on Thursday, March 26th. JPMorgan Chase & Co. increased their price target on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. Finally, Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research note on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Paychex has a consensus rating of “Hold” and an average target price of $105.80.

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.