58,635 Shares of Paychex, Inc. $PAYX Bought by Hourglass Capital LLC

Key Points

• Hourglass Capital purchased 58,635 Paychex shares worth approximately $5.8 million in the third quarter. Institutional investors collectively own 83.47% of the company.
• Analysts maintain a consensus “Hold” rating, with a $127.59 average price target; recent target changes were mixed, including cuts from Robert W. Baird and BMO Capital Markets.
• Paychex exceeded quarterly earnings expectations, reporting $1.34 EPS and $1.63 billion in revenue, while revenue grew 5.9% year over year. The company declared a $1.19 quarterly dividend, equivalent to a 4.1% annualized yield.

Hourglass Capital LLC bought a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 58,635 shares of the business services provider's stock, valued at approximately $5,776,000.

A number of other hedge funds also recently made changes to their positions in the business. Field & Main Bank bought a new stake in shares of Paychex during the second quarter valued at about $33,000. Leonteq Securities AG boosted its position in shares of Paychex by 2,669.2% in the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after acquiring an additional 347 shares during the period. Castleark Management LLC bought a new position in shares of Paychex in the second quarter valued at approximately $35,000. Elevation Wealth Partners LLC boosted its position in shares of Paychex by 45.5% in the second quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider's stock valued at $39,000 after acquiring an additional 125 shares during the period. Finally, Cornerstone Planning Group LLC grew its stake in Paychex by 62.5% during the first quarter. Cornerstone Planning Group LLC now owns 481 shares of the business services provider's stock valued at $45,000 after acquiring an additional 185 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Robert W. Baird decreased their target price on shares of Paychex from $125.00 to $110.00 and set a "neutral" rating on the stock in a report on Monday, September 28th. Morgan Stanley raised their price target on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. BMO Capital Markets reduced their price target on shares of Paychex from $118.00 to $113.00 and set a "market perform" rating for the company in a research report on Thursday, September 24th. Wells Fargo & Company boosted their price target on shares of Paychex from $95.00 to $111.00 and gave the company an "underweight" rating in a research report on Wednesday, September 9th. Finally, Guggenheim reaffirmed a "neutral" rating on shares of Paychex in a report on Thursday, September 17th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Paychex has a consensus rating of "Hold" and a consensus price target of $127.59.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $115.70 on Tuesday. The company's fifty day moving average price is $113.83 and its 200-day moving average price is $103.64. The firm has a market capitalization of $41.19 billion, a price-to-earnings ratio of 20.97, a PEG ratio of 2.48 and a beta of 0.86. Paychex, Inc. has a one year low of $85.45 and a one year high of $127.98. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.28 and a quick ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the firm posted $1.22 EPS. The firm's revenue was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, equities research analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, October 26th will be issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date of this dividend is Monday, October 26th. Paychex's dividend payout ratio (DPR) is currently 94.44%.

Insiders Place Their Bets

In other Paychex news, Director Joseph Velli sold 7,839 shares of the company's stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $107.68, for a total value of $844,103.52. Following the completion of the sale, the director owned 81,725 shares of the company's stock, valued at $8,800,148. This represents a 8.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.60% of the stock is owned by insiders.

Paychex Company Profile

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.

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