Heritage Financial Services LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Heritage Financial Services LLC has acquired a new stake in Paychex, Inc., purchasing 3,932 shares worth approximately $607,000 in the first quarter of the year.
• Several institutional investors, including Alpine Bank Wealth Management and MorganRosel Wealth Management, have also entered positions in Paychex, indicating growing interest among institutional investors.
• Paychex recently announced a quarterly dividend of $1.08, with an annualized yield of 3.1%, highlighting its commitment to returning value to shareholders.

Heritage Financial Services LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 3,932 shares of the business services provider's stock, valued at approximately $607,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Brighton Jones LLC boosted its holdings in shares of Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after acquiring an additional 1,190 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Paychex in the fourth quarter valued at approximately $227,000. Freedom Investment Management Inc. boosted its holdings in shares of Paychex by 5.2% in the fourth quarter. Freedom Investment Management Inc. now owns 2,089 shares of the business services provider's stock valued at $293,000 after acquiring an additional 104 shares in the last quarter. Natixis bought a new position in shares of Paychex in the fourth quarter valued at approximately $538,000. Finally, Kayne Anderson Rudnick Investment Management LLC boosted its holdings in shares of Paychex by 10.5% in the fourth quarter. Kayne Anderson Rudnick Investment Management LLC now owns 76,876 shares of the business services provider's stock valued at $10,780,000 after acquiring an additional 7,294 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Insider Buying and Selling at Paychex

In related news, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction 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 transaction, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the transaction, the chairman owned 446,917 shares in the company, valued at $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. Corporate insiders own 11.40% of the company's stock.

Paychex Stock Up 1.7%

Shares of PAYX traded up $2.40 during mid-day trading on Friday, hitting $140.81. 2,066,281 shares of the company's stock were exchanged, compared to its average volume of 2,159,591. The firm has a fifty day moving average of $143.73 and a two-hundred day moving average of $147.78. Paychex, Inc. has a twelve month low of $127.76 and a twelve month high of $161.24. The stock has a market cap of $50.73 billion, a price-to-earnings ratio of 30.81, a P/E/G ratio of 3.17 and a beta of 0.91. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, hitting the consensus estimate of $1.19. Paychex had a net margin of 29.75% and a return on equity of 45.01%. The company had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the business posted $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. On average, sell-side analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Monday, July 21st will be paid a dividend of $1.08 per share. The ex-dividend date is Monday, July 21st. This represents a $4.32 annualized dividend and a dividend yield of 3.1%. Paychex's dividend payout ratio is 94.53%.

Analyst Ratings Changes

PAYX has been the subject of several research analyst reports. 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 research report on Thursday. Stifel Nicolaus reduced their price target on shares of Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 price target on shares of Paychex and gave the company a "sector perform" rating in a research report on Tuesday, June 24th. UBS Group reduced their price target on shares of Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research report on Thursday, June 26th. Finally, BMO Capital Markets initiated coverage on shares of Paychex in a research report on Thursday, July 10th. They issued a "market perform" rating and a $160.00 price target for the company. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $149.70.

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.