HBK Sorce Advisory LLC Makes New $1.27 Million Investment in Paychex, Inc. $PAYX

Key Points

• HBK Sorce Advisory LLC acquired 10,738 Paychex shares worth approximately $1.27 million during the second quarter. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations with EPS of $1.32 and revenue of $1.61 billion, up 12.5% year over year. The company guided to fiscal 2027 EPS of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19, equivalent to a 3.9% annualized yield. Despite some bullish analyst revisions, the stock carries a consensus “Hold” rating with a $109.20 price target.

HBK Sorce Advisory LLC purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 10,738 shares of the business services provider's stock, valued at approximately $1,270,000.

A number of other hedge funds also recently added to or reduced their stakes in PAYX. Cornerstone Planning Group LLC increased its position in Paychex by 957.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after purchasing an additional 268 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Paychex in the 4th quarter worth approximately $31,000. Kingdom Financial Group LLC. bought a new position in shares of Paychex during the fourth quarter valued at approximately $33,000. Leonteq Securities AG boosted its stake in shares of Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after purchasing an additional 347 shares in the last quarter. Finally, Acumen Wealth Advisors LLC purchased a new position in Paychex during the fourth quarter valued at approximately $34,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Price Performance

NASDAQ PAYX opened at $122.02 on Monday. The firm's fifty day simple moving average is $108.92 and its two-hundred day simple moving average is $99.34. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $141.19. The firm has a market capitalization of $43.40 billion, a P/E ratio of 24.95 and a beta of 0.81.

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

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors 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 3.9%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is presently 97.34%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on PAYX. Citigroup boosted their price objective on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Jefferies Financial Group increased their target price on Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a research report on Wednesday. TD Cowen lifted their price target on Paychex from $94.00 to $98.00 and gave the company a "hold" rating in a report on Monday, June 8th. Cantor Fitzgerald reissued an "underweight" rating and issued a $107.00 price target on shares of Paychex in a research report on Monday, July 20th. Finally, Morgan Stanley upped their price objective on Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $109.20.

Insiders Place Their Bets

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction 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 completion of the sale, 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the business's stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.80% of the company's stock.

Paychex 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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