HORAN Wealth LLC Invests $4.75 Million in Paychex, Inc. $PAYX

Key Points

• HORAN Wealth LLC acquired 48,343 Paychex shares during the second quarter, worth approximately $4.75 million. Institutional investors collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations with $1.32 in EPS and $1.61 billion in revenue, while revenue increased 12.5% year over year. The company guided to fiscal 2027 EPS of $5.90–$6.01.
• Paychex pays an annualized dividend of $4.76 per share, yielding about 3.9%; analysts maintain a consensus “Hold” rating with an average price target of $111, below the reported $121.71 share price.

HORAN Wealth LLC acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 48,343 shares of the business services provider's stock, valued at approximately $4,754,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in PAYX. Hilton Head Capital Partners LLC acquired a new stake in Paychex during the 4th quarter worth about $31,000. Kingdom Financial Group LLC. purchased a new position in shares of Paychex in the fourth quarter worth about $33,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Paychex during the fourth quarter worth about $34,000. Wealth Watch Advisors INC purchased a new stake in Paychex in the third quarter valued at approximately $42,000. Finally, Field & Main Bank acquired a new position in Paychex in the 2nd quarter worth approximately $33,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Price Performance

Shares of Paychex stock opened at $121.71 on Monday. The firm has a market cap of $43.29 billion, a PE ratio of 24.89, a P/E/G ratio of 2.55 and a beta of 0.82. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $138.19. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The business has a 50-day moving average price of $116.50 and a 200 day moving average price of $102.02.

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 company 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%.Paychex's revenue for the quarter was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Sell-side analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were paid a $1.19 dividend. The ex-dividend date of this dividend was Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Analyst Upgrades and Downgrades

Several brokerages have commented on PAYX. Stephens began coverage on shares of Paychex in a research note on Friday. They set an "equal weight" rating and a $132.00 price objective for the company. Citigroup upped their price target on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Stifel Nicolaus lifted their price objective on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. JPMorgan Chase & Co. upped their target price on Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Finally, UBS Group lifted their price target on Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $111.00.

Insider Buying and Selling at Paychex

In other news, Director Joseph Tucci sold 3,907 shares of Paychex stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Robert Schrader sold 2,600 shares of the business's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is currently owned by insiders.

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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