Hamlin Capital Management LLC Purchases 59,601 Shares of Paychex, Inc. $PAYX

Key Points

• Hamlin Capital Management increased its Paychex position by 5.2%, purchasing 59,601 additional shares and bringing its holdings to 1.20 million shares valued at approximately $117.7 million.
• Paychex reported quarterly revenue of $1.61 billion and earnings of $1.32 per share, slightly exceeding analyst expectations, while revenue grew 12.5% year over year.
• Analysts maintain a generally cautious outlook, with an average “Hold” rating and a $108.20 price target. Paychex also declared a quarterly dividend of $1.19, representing a 4.0% annualized yield.

Hamlin Capital Management LLC raised its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 5.2% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,196,771 shares of the business services provider's stock after acquiring an additional 59,601 shares during the period. Paychex makes up approximately 2.6% of Hamlin Capital Management LLC's holdings, making the stock its 23rd biggest holding. Hamlin Capital Management LLC owned approximately 0.33% of Paychex worth $117,678,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of PAYX. Vanguard Group Inc. grew its position in Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after acquiring an additional 4,583,157 shares during the last quarter. LBP AM SA increased its stake in Paychex by 125.2% in the fourth quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock worth $4,545,000 after purchasing an additional 22,527 shares during the period. Tectonic Advisors LLC lifted its position in shares of Paychex by 17.4% during the fourth quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock worth $8,942,000 after purchasing an additional 11,805 shares during the last quarter. Comerica Bank boosted its stake in shares of Paychex by 10.4% during the fourth quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after purchasing an additional 11,497 shares during the period. Finally, Danske Bank A S boosted its stake in shares of Paychex by 14.0% during the fourth quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock valued at $23,035,000 after purchasing an additional 25,184 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a research note on Thursday, May 28th. UBS Group boosted their price objective on shares of Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Stifel Nicolaus upped their target price on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research note on Wednesday, June 17th. Weiss Ratings upgraded shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Finally, Cantor Fitzgerald reaffirmed an "underweight" rating and set a $107.00 target price on shares of Paychex in a research report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $108.20.

Paychex Stock Performance

Shares of Paychex stock opened at $118.27 on Thursday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The stock's fifty day moving average price is $105.79 and its 200-day moving average price is $98.68. The firm has a market cap of $42.07 billion, a P/E ratio of 24.19 and a beta of 0.81. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.89.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share 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 during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the prior year, the firm earned $1.19 earnings per share. The firm's revenue for the quarter was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio is presently 97.34%.

Insider Activity at Paychex

In other news, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by corporate insiders.

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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