Diversify Wealth Management LLC Purchases New Holdings in Paychex, Inc. $PAYX

Key Points

• Diversify Wealth Management opened a new position in Paychex during Q1, buying 9,512 shares worth about $895,000. Several other institutional investors also increased their stakes, and institutions now own 83.47% of the company.
• Paychex reported better-than-expected quarterly results, with EPS of $1.32 versus estimates of $1.31 and revenue of $1.61 billion versus expectations of $1.60 billion. Revenue rose 12.5% year over year, and the company provided FY 2027 EPS guidance of 5.90–6.01.
• The company declared a quarterly dividend of $1.19 per share, implying a 4.1% annualized yield. At the same time, analysts remain cautious overall, with a consensus rating of Hold and an average price target of $105.80.

Diversify Wealth Management LLC acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 9,512 shares of the business services provider's stock, valued at approximately $895,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Carnegie Investment Counsel increased its position in shares of Paychex by 60.9% in the first quarter. Carnegie Investment Counsel now owns 22,765 shares of the business services provider's stock worth $2,097,000 after purchasing an additional 8,620 shares during the period. Citizens Financial Group Inc. RI raised its stake in Paychex by 26.3% in the first quarter. Citizens Financial Group Inc. RI now owns 9,797 shares of the business services provider's stock valued at $903,000 after purchasing an additional 2,037 shares in the last quarter. Fifth Third Bancorp lifted its position in Paychex by 361.3% during the first quarter. Fifth Third Bancorp now owns 162,792 shares of the business services provider's stock worth $14,996,000 after purchasing an additional 127,503 shares during the period. Van Cleef Asset Management Inc lifted its position in Paychex by 10.3% during the first quarter. Van Cleef Asset Management Inc now owns 227,971 shares of the business services provider's stock worth $21,001,000 after purchasing an additional 21,330 shares during the period. Finally, Simplicity Wealth LLC grew its stake in Paychex by 76.1% during the first quarter. Simplicity Wealth LLC now owns 4,118 shares of the business services provider's stock worth $379,000 after buying an additional 1,780 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Insider Buying and Selling

In other Paychex 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 sale, the director owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.80% of the company's stock.

Paychex Trading Up 4.3%

Shares of NASDAQ PAYX opened at $114.70 on Friday. The firm has a 50 day moving average price of $99.64 and a two-hundred day moving average price of $98.28. The stock has a market cap of $41.10 billion, a P/E ratio of 23.46 and a beta of 0.84. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $148.11. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26.

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

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued 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 yield of 4.1%. Paychex's payout ratio is presently 97.34%.

Wall Street Analyst Weigh In

Several equities analysts have commented on PAYX shares. Stephens decreased their target price on shares of Paychex from $125.00 to $105.00 and set an "equal weight" rating on the stock in a report on Thursday, March 26th. UBS Group cut their price target on shares of Paychex from $100.00 to $98.00 and set a "neutral" rating for the company in a report on Thursday, June 25th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paychex in a research report on Thursday, May 28th. Jefferies Financial Group decreased their price objective on shares of Paychex from $110.00 to $105.00 and set a "hold" rating on the stock in a research note on Thursday, March 26th. Finally, Morgan Stanley boosted their price objective on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. One equities 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 given a Sell rating to the company. According to MarketBeat, Paychex has a consensus rating of "Hold" and an average price target of $105.80.

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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