Sumitomo Life Insurance Co. Makes New $7.27 Million Investment in Paychex, Inc. $PAYX

Sumitomo Life Insurance Co. bought a new stake in shares of Paychex, Inc. (NASDAQ:PAYX) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 73,900 shares of the business services provider’s stock, valued at approximately $7,267,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. 44 Wealth Management LLC increased its position in shares of Paychex by 2.7% during 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 in the last quarter. Smartleaf Asset Management LLC lifted its holdings in Paychex by 3.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock valued at $381,000 after purchasing an additional 89 shares in the last quarter. Prosperity Consulting Group LLC lifted its holdings in Paychex by 1.4% in the 3rd quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock valued at $922,000 after purchasing an additional 100 shares in the last quarter. SBI Securities Co. Ltd. boosted its stake in 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 purchasing an additional 101 shares during the last quarter. Finally, Zacks Investment Management boosted its stake in 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 purchasing an additional 101 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Stock Up 1.3%

Shares of PAYX opened at $124.47 on Friday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19. The company has a market capitalization of $44.27 billion, a PE ratio of 25.45 and a beta of 0.81. The stock has a fifty day simple moving average of $111.08 and a two-hundred 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.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter in the previous year, the company posted $1.19 EPS. The company’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. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders 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 dividend on an annualized basis and a yield of 3.8%. Paychex’s payout ratio is 97.34%.

Analyst Ratings Changes

A number of equities research analysts have recently commented on PAYX shares. Stifel Nicolaus increased their target price on shares of Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research report on Wednesday, June 17th. Royal Bank Of Canada restated a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. JPMorgan Chase & Co. upped their price objective on shares of Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research note on Thursday, June 25th. Cantor Fitzgerald reiterated an “underweight” rating and issued a $107.00 price objective on shares of Paychex in a report on Monday, July 20th. Finally, Citigroup raised their target price on shares of Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. 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 issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $109.20.

Insider Buying and Selling at Paychex

In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction 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 transaction, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 completion of the sale, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company’s stock.

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.