Connor Clark & Lunn Investment Management Ltd. Takes Position in Paychex, Inc. $PAYX

Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX) during the 2nd quarter, Holdings Channel.com reports. The firm bought 294,257 shares of the business services provider’s stock, valued at approximately $28,934,000.

A number of other hedge funds have also recently added to or reduced their stakes in the business. Hilton Head Capital Partners LLC purchased a new stake in Paychex in the 4th quarter valued at about $31,000. Cornerstone Planning Group LLC lifted its holdings in shares of Paychex by 957.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock worth $30,000 after acquiring an additional 268 shares during the period. Kingdom Financial Group LLC. purchased a new position in shares of Paychex during the 4th quarter worth about $33,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Paychex in the fourth quarter worth approximately $34,000. Finally, Wealth Watch Advisors INC acquired a new stake in shares of Paychex in the third quarter worth approximately $42,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on PAYX shares. Stifel Nicolaus upped their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a research report on Wednesday, June 17th. JPMorgan Chase & Co. lifted their price target on shares of Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a report on Thursday, June 25th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research note on Thursday, May 28th. Cantor Fitzgerald restated an “underweight” rating and set a $107.00 price objective on shares of Paychex in a report on Monday, July 20th. Finally, Weiss Ratings raised Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, Paychex presently has a consensus rating of “Hold” and an average price target of $109.20.

Insider Activity

In other news, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer owned 18,547 shares of the company’s stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.80% of the company’s stock.

Paychex Price Performance

PAYX opened at $126.01 on Tuesday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $140.56. The company has a 50 day moving average of $111.58 and a two-hundred day moving average of $100.20. The company has a market cap of $44.82 billion, a P/E ratio of 25.77 and a beta of 0.81. 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 issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be given a $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 annualized dividend and a yield of 3.8%. Paychex’s dividend payout ratio (DPR) is 97.34%.

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.