DMKC Advisory Services LLC Raises Stake in Paychex, Inc. $PAYX

Key Points

• DMKC Advisory Services LLC increased its stake in Paychex, Inc. by 252.9% during the 2nd quarter, now holding shares worth approximately $1.7 million.
• Several hedge funds significantly raised their positions in Paychex, with Select Equity Group L.P. alone increasing holdings by 99% in the 1st quarter.
• The company recently reported earnings per share of $1.22, exceeding analysts' expectations, alongside a dividend yield of 3.5% following its latest dividend announcement.

DMKC Advisory Services LLC boosted its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 252.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 11,896 shares of the business services provider's stock after purchasing an additional 8,525 shares during the quarter. DMKC Advisory Services LLC's holdings in Paychex were worth $1,705,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in PAYX. Select Equity Group L.P. increased its holdings in Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock worth $539,102,000 after acquiring an additional 1,738,372 shares during the period. Nuveen LLC purchased a new position in shares of Paychex during the 1st quarter valued at $134,192,000. Charles Schwab Investment Management Inc. increased its holdings in shares of Paychex by 7.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock worth $1,663,474,000 after purchasing an additional 737,542 shares during the period. Neuberger Berman Group LLC increased its holdings in shares of Paychex by 117.6% in the first quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider's stock worth $187,512,000 after purchasing an additional 657,871 shares during the period. Finally, Goldman Sachs Group Inc. raised its position in shares of Paychex by 25.7% in the first quarter. Goldman Sachs Group Inc. now owns 2,844,949 shares of the business services provider's stock worth $438,919,000 after buying an additional 581,410 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Robert W. Baird reduced their target price on Paychex from $153.00 to $148.00 and set a "neutral" rating for the company in a research report on Wednesday. Royal Bank Of Canada set a $165.00 price objective on Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th. Stifel Nicolaus lowered their target price on shares of Paychex from $142.00 to $137.00 and set a "hold" rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. lifted their target price on shares of Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research report on Thursday, August 14th. Finally, BMO Capital Markets decreased their price target on shares of Paychex from $143.00 to $140.00 and set a "market perform" rating on the stock in a report on Wednesday. Eleven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Paychex currently has a consensus rating of "Reduce" and an average target price of $142.83.

Insider Transactions at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the sale, the chief executive officer owned 81,755 shares of the company's stock, valued at approximately $11,602,669.60. The trade was a 13.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction that occurred on 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 in the company, valued at approximately $64,878,940.89. The trade was a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.80% of the company's stock.

Paychex Trading Down 2.2%

PAYX stock opened at $124.01 on Thursday. The company has a market capitalization of $44.60 billion, a PE ratio of 27.87, a price-to-earnings-growth ratio of 2.90 and a beta of 0.92. Paychex, Inc. has a one year low of $119.02 and a one year high of $161.24. The company's 50 day moving average price is $136.59 and its two-hundred day moving average price is $144.72. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.28 and a current ratio of 1.27.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.02. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The company had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter in the prior year, the company earned $1.16 EPS. The firm's 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, analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were issued a $1.08 dividend. The ex-dividend date was Monday, July 21st. This represents a $4.32 annualized dividend and a dividend yield of 3.5%. Paychex's payout ratio is currently 94.53%.

Paychex Profile

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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