60,231 Shares in Paychex, Inc. $PAYX Bought by Two Point Capital Management Inc.

Key Points

• Two Point Capital Management Inc. acquired 60,231 shares of Paychex, valued at approximately $8.76 million, making it the firm's 14th largest position with a 3.7% allocation in its portfolio.
• CEO John B. Gibson and Chairman Martin Mucci both sold significant shares, decreasing their ownership stakes by 13.14% and 17.91% respectively, indicating potential insider selling trends.
• Paychex reported a quarterly EPS of $1.22, beating expectations and demonstrating a year-over-year revenue increase of 16.8%, along with a recent quarterly dividend of $1.08 per share.

Two Point Capital Management Inc. acquired a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 60,231 shares of the business services provider's stock, valued at approximately $8,761,000. Paychex makes up approximately 3.7% of Two Point Capital Management Inc.'s holdings, making the stock its 14th biggest position.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Summit Wealth Partners LLC boosted its holdings in Paychex by 2.4% during the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock valued at $467,000 after purchasing an additional 70 shares in the last quarter. LGT Group Foundation grew its position in Paychex by 2.8% in the first quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock valued at $390,000 after acquiring an additional 70 shares during the period. Golden State Equity Partners raised its stake in Paychex by 0.9% during the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after acquiring an additional 71 shares in the last quarter. Palumbo Wealth Management LLC lifted its holdings in shares of Paychex by 2.4% during the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock valued at $492,000 after acquiring an additional 74 shares during the period. Finally, King Wealth Management Group boosted its stake in shares of Paychex by 4.7% in the 1st quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock valued at $257,000 after purchasing an additional 75 shares in the last quarter. 83.47% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the transaction, the chief executive officer owned 81,755 shares in the company, valued at $11,602,669.60. This represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of the stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $145.17, for a total value of $14,157,849.42. Following the transaction, the chairman owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by corporate insiders.

Paychex Stock Performance

Shares of NASDAQ:PAYX opened at $123.42 on Friday. The firm's 50 day simple moving average is $136.13 and its 200 day simple moving average is $144.55. Paychex, Inc. has a fifty-two week low of $119.02 and a fifty-two week high of $161.24. The company has a market capitalization of $44.38 billion, a price-to-earnings ratio of 27.73, a P/E/G ratio of 2.83 and a beta of 0.92. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its earnings results on Tuesday, September 30th. The business services provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.20 by $0.02. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The firm had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter in the prior year, the firm earned $1.16 earnings per share. The business's quarterly revenue was up 16.8% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, sell-side analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were issued a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 3.5%. The ex-dividend date was Monday, July 21st. Paychex's payout ratio is 97.08%.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Stifel Nicolaus cut their price target on shares of Paychex from $142.00 to $137.00 and set a "hold" rating for the company in a report on Wednesday. Robert W. Baird cut their target price on shares of Paychex from $153.00 to $148.00 and set a "neutral" rating for the company in a research note on Wednesday. Royal Bank Of Canada set a $165.00 target price on Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th. TD Cowen cut their price objective on Paychex from $140.00 to $126.00 and set a "hold" rating for the company in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on shares of Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a report on Thursday, August 14th. Eleven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Paychex has an average rating of "Reduce" and an average price target of $142.83.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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