10,527 Shares in Paychex, Inc. $PAYX Bought by Diversify Advisory Services LLC

Key Points

• Diversify Advisory Services initiated a Paychex position by purchasing 10,527 shares valued at approximately $1.2 million. Institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex reported quarterly EPS of $1.32, slightly above estimates, while revenue rose 12.5% year over year to $1.61 billion. The company issued fiscal 2027 EPS guidance of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19 per share, equivalent to a 3.9% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $109.20, below the reported $122.50 share price.

Diversify Advisory Services LLC bought a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 10,527 shares of the business services provider's stock, valued at approximately $1,216,000.

Other hedge funds have also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Paychex by 12.1% during the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares during the period. Danske Bank A S lifted its stake in shares of Paychex by 14.0% in the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock valued at $23,035,000 after purchasing an additional 25,184 shares during the period. Comerica Bank boosted its position in shares of Paychex by 10.4% during the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after purchasing an additional 11,497 shares in the last quarter. Truist Financial Corp grew its stake in Paychex by 33.3% during the fourth quarter. Truist Financial Corp now owns 208,150 shares of the business services provider's stock worth $23,350,000 after purchasing an additional 51,982 shares during the period. Finally, Oppenheimer Asset Management Inc. bought a new stake in Paychex in the second quarter worth approximately $7,296,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Trading Up 2.1%

PAYX opened at $122.50 on Thursday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $141.19. The firm has a market capitalization of $43.57 billion, a PE ratio of 25.05 and a beta of 0.81. The company's 50-day moving average is $110.13 and its 200 day moving average is $99.70.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. The business had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given 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 3.9%. Paychex's payout ratio is presently 97.34%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on PAYX. Morgan Stanley increased their price target on Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. UBS Group boosted their target price on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Weiss Ratings raised shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Stifel Nicolaus lifted their price target on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. Finally, 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 research note on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Paychex has a consensus rating of "Hold" and an average price target of $109.20.

Insider Buying and Selling at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction on Monday, July 20th. The stock was 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 directly owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the 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 owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This represents a 5.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.80% of the company's stock.

Paychex Company 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.

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