Simplicity Wealth LLC Makes New Investment in Paychex, Inc. $PAYX

Simplicity Wealth LLC purchased a new position in Paychex, Inc. (NASDAQ:PAYX) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 4,488 shares of the business services provider’s stock, valued at approximately $441,000.

A number of other large investors also recently modified their holdings of the business. 44 Wealth Management LLC lifted its holdings in Paychex by 2.7% in the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock worth $479,000 after purchasing an additional 86 shares during the period. Smartleaf Asset Management LLC increased its stake in Paychex by 3.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock valued at $381,000 after buying an additional 89 shares during the period. Prosperity Consulting Group LLC increased its stake in Paychex by 1.4% during the 3rd quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock valued at $922,000 after buying an additional 100 shares during the period. SBI Securities Co. Ltd. raised its position in shares of Paychex by 14.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider’s stock worth $90,000 after buying an additional 101 shares in the last quarter. Finally, Zacks Investment Management raised its position in shares of Paychex by 5.1% during the 3rd quarter. Zacks Investment Management now owns 2,094 shares of the business services provider’s stock worth $265,000 after buying an additional 101 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, CFO Robert L. Schrader sold 2,600 shares of the business’s 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 sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction dated 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 directly owned 67,364 shares of the company’s stock, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.80% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on PAYX shares. Citigroup increased their price objective on shares of Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Cantor Fitzgerald reissued an “underweight” rating and set a $107.00 target price on shares of Paychex in a report on Monday, July 20th. UBS Group upped their target price on Paychex from $105.00 to $115.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Stifel Nicolaus increased their price target on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research note on Wednesday, June 17th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Paychex has an average rating of “Hold” and a consensus target price of $109.20.

Paychex Stock Down 2.9%

NASDAQ PAYX opened at $118.54 on Tuesday. 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’s 50 day simple moving average is $109.31 and its 200 day simple moving average is $99.43. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.19. The company has a market capitalization of $42.16 billion, a P/E ratio of 24.24 and a beta of 0.81.

Paychex (NASDAQ:PAYX) last issued 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. 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 firm’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period last year, the firm posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Equities research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

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. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.0%. Paychex’s dividend payout ratio (DPR) is currently 97.34%.

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.