Drucker Wealth 3.0 LLC Makes New $760,000 Investment in Paychex, Inc. $PAYX

Key Points

• Drucker Wealth 3.0 LLC has made a new investment of approximately $760,000 in Paychex, Inc., acquiring 5,205 shares in the 2nd quarter.
• Paychex reported a 16.8% year-over-year increase in revenue, with earnings per share of $1.22, surpassing analysts' expectations.
• The company announced a quarterly dividend of $1.08, with a yield of 3.4%, to be paid on November 26th.

Drucker Wealth 3.0 LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 5,205 shares of the business services provider's stock, valued at approximately $760,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in PAYX. Alpine Bank Wealth Management bought a new position in shares of Paychex in the first quarter worth $34,000. MorganRosel Wealth Management LLC bought a new position in Paychex in the 1st quarter valued at about $34,000. Quarry LP bought a new position in Paychex in the 1st quarter valued at about $34,000. Tsfg LLC grew its position in Paychex by 122.3% in the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after buying an additional 126 shares in the last quarter. Finally, Nova Wealth Management Inc. bought a new position in Paychex in the 1st quarter valued at about $38,000. 83.47% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on PAYX. Morgan Stanley decreased their price objective on shares of Paychex from $148.00 to $132.00 and set an "equal weight" rating for the company in a report on Wednesday, October 1st. Royal Bank Of Canada set a $165.00 price target on Paychex and gave the company a "sector perform" rating in a research note on Tuesday, June 24th. Weiss Ratings raised Paychex from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday. Robert W. Baird decreased their price target on Paychex from $153.00 to $148.00 and set a "neutral" rating for the company in a research note on Wednesday, October 1st. Finally, Stifel Nicolaus decreased their target price on Paychex from $142.00 to $137.00 and set a "hold" rating for the company in a research note on Wednesday, October 1st. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $141.29.

Paychex Trading Up 0.3%

NASDAQ:PAYX opened at $125.55 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15. Paychex, Inc. has a 1-year low of $119.02 and a 1-year high of $161.24. The firm has a market capitalization of $45.18 billion, a price-to-earnings ratio of 28.21, a price-to-earnings-growth ratio of 2.86 and a beta of 0.92. The stock has a fifty day simple moving average of $133.78 and a 200 day simple moving average of $143.73.

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

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Friday, November 7th will be paid a $1.08 dividend. The ex-dividend date of this dividend is Friday, November 7th. This represents a $4.32 dividend on an annualized basis and a yield of 3.4%. Paychex's dividend payout ratio (DPR) is currently 97.08%.

Insider Buying and Selling

In related news, CEO John B. Gibson sold 12,370 shares of the firm'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 of the company's stock, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.80% of the company's stock.

Paychex Company 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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