Baxter Bros Inc. Takes Position in Paychex, Inc. $PAYX

Key Points

• Baxter Bros Inc. acquired 87,219 Paychex shares worth approximately $8.6 million in the second quarter, making Paychex its 28th-largest holding and 1% of its portfolio. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly earnings of $1.32 per share, slightly above estimates, while revenue rose 12.5% year over year to $1.61 billion. The company issued FY2027 EPS guidance of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19 per share, implying $4.76 annually and a 3.9% yield. Analysts maintain a consensus “Hold” rating with a $109.20 price target, below the reported share price of $122.02.

Baxter Bros Inc. acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 87,219 shares of the business services provider's stock, valued at approximately $8,576,000. Paychex comprises 1.0% of Baxter Bros Inc.'s investment portfolio, making the stock its 28th largest holding.

A number of other institutional investors and hedge funds also recently modified their holdings of PAYX. Cornerstone Planning Group LLC boosted its position in Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock worth $30,000 after purchasing an additional 268 shares during the period. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex during the 4th quarter worth about $31,000. Kingdom Financial Group LLC. bought a new stake in shares of Paychex during the 4th quarter worth about $33,000. Leonteq Securities AG grew its stake in Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after buying an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC bought a new position in Paychex in the 4th quarter valued at about $34,000. 83.47% of the stock is owned by institutional investors.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $122.02 on Monday. The stock has a market capitalization of $43.40 billion, a PE ratio of 24.95 and a beta of 0.81. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The business has a fifty day moving average price of $108.92 and a two-hundred day moving average price of $99.34. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $141.19.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. The firm 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 revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently declared 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 is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 3.9%. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Insider Buying and Selling

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the company's stock in a transaction on Friday, June 26th. The stock was 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 in the company, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the firm's 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 completion of the sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This 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.

Wall Street Analysts Forecast Growth

PAYX has been the subject of several research reports. Cantor Fitzgerald restated an "underweight" rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. UBS Group upped their target price on Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. JPMorgan Chase & Co. lifted their price target on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a report on Thursday, June 25th. Citigroup upped their price objective on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, Weiss Ratings upgraded 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 assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $109.20.

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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