Hamlin Capital Management LLC Has $187.01 Million Stock Position in Paychex, Inc. $PAYX

Key Points

• Hamlin Capital Management LLC owns a $187.01 million position in Paychex, Inc., having increased its stake by 1.1% in the second quarter, making it the fund's 10th largest holding.
• Paychex reported earnings of $1.22 per share, beating expectations, with a year-over-year revenue increase of 16.8%.
• The company announced a quarterly dividend of $1.08 per share, reflecting an annualized dividend yield of 3.4% with a payout ratio of 97.08%.

Hamlin Capital Management LLC increased its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 1.1% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,285,666 shares of the business services provider's stock after buying an additional 13,698 shares during the period. Paychex accounts for 4.3% of Hamlin Capital Management LLC's holdings, making the stock its 10th biggest holding. Hamlin Capital Management LLC owned about 0.36% of Paychex worth $187,013,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. MorganRosel Wealth Management LLC bought a new position in Paychex during the first quarter worth $34,000. Quarry LP bought a new position in Paychex during the first quarter worth $34,000. Alpine Bank Wealth Management bought a new position in Paychex during the first quarter worth $34,000. Tsfg LLC raised its stake in Paychex by 122.3% during the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock worth $35,000 after buying an additional 126 shares during the last quarter. Finally, Nova Wealth Management Inc. bought a new position in Paychex during the first quarter worth $38,000. Institutional investors own 83.47% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on PAYX shares. Citigroup reduced their price target on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. Jefferies Financial Group set a $130.00 price target on shares of Paychex in a report on Tuesday, September 30th. Robert W. Baird reduced their price target on shares of Paychex from $153.00 to $148.00 and set a "neutral" rating for the company in a report on Wednesday, October 1st. Royal Bank Of Canada set a $165.00 price target on shares of Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th. Finally, Stephens upgraded shares of Paychex to a "hold" rating in a report on Tuesday, October 7th. One research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $141.29.

Paychex Stock Up 0.1%

Shares of NASDAQ PAYX opened at $126.56 on Friday. The stock has a market capitalization of $45.55 billion, a P/E ratio of 28.44, a P/E/G ratio of 2.89 and a beta of 0.92. The company has a 50-day moving average price of $132.52 and a 200-day moving average price of $142.87. Paychex, Inc. has a 1 year low of $119.02 and a 1 year high of $161.24. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27.

Paychex (NASDAQ:PAYX - Get Free Report) last issued 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. The firm had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.54 billion. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The business's revenue was up 16.8% on a year-over-year basis. During the same period last year, the company earned $1.16 earnings per share. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, equities research analysts forecast that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

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

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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