Klingman & Associates LLC Takes Position in Paychex, Inc. $PAYX

Key Points

• Klingman & Associates LLC acquired a stake of 2,069 shares in Paychex, Inc. valued at approximately $301,000 during the 2nd quarter.
• Hedge funds collectively own 83.47% of Paychex's stock, with several firms adjusting their positions, including a 99.0% increase by Select Equity Group L.P. in the 1st quarter.
• Paychex reported a quarterly EPS of $1.22, surpassing analyst estimates, and has announced a quarterly dividend of $1.08 per share set to be paid on November 26th.

Klingman & Associates LLC acquired a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 2,069 shares of the business services provider's stock, valued at approximately $301,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Paychex by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 31,807,843 shares of the business services provider's stock valued at $4,907,314,000 after buying an additional 286,818 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Paychex by 7.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock valued at $1,663,474,000 after buying an additional 737,542 shares during the period. Northern Trust Corp boosted its stake in shares of Paychex by 3.8% in the 1st quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock valued at $769,731,000 after buying an additional 181,628 shares during the period. Invesco Ltd. boosted its stake in shares of Paychex by 0.7% in the 1st quarter. Invesco Ltd. now owns 4,135,296 shares of the business services provider's stock valued at $637,993,000 after buying an additional 30,670 shares during the period. Finally, Select Equity Group L.P. boosted its stake in shares of Paychex by 99.0% in the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock valued at $539,102,000 after buying an additional 1,738,372 shares during the period. Hedge funds and other institutional investors own 83.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Stifel Nicolaus decreased their target price on Paychex from $142.00 to $137.00 and set a "hold" rating for the company in a research note on Wednesday, October 1st. TD Cowen decreased their target price on Paychex from $140.00 to $126.00 and set a "hold" rating for the company in a research note on Wednesday, October 1st. Jefferies Financial Group set a $130.00 target price on Paychex in a research note on Tuesday, September 30th. Wolfe Research decreased their target price on Paychex from $145.00 to $140.00 and set an "underperform" rating for the company in a research note on Friday, September 26th. Finally, Stephens upgraded Paychex to a "hold" rating in a research note on Tuesday, October 7th. One investment analyst has rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $140.47.

Paychex Trading Up 0.8%

PAYX opened at $127.54 on Wednesday. The firm has a market cap of $45.90 billion, a price-to-earnings ratio of 28.66, a price-to-earnings-growth ratio of 2.89 and a beta of 0.92. Paychex, Inc. has a 52 week low of $119.02 and a 52 week high of $161.24. The business's 50 day moving average is $132.13 and its two-hundred day moving average is $142.49. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results 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 business had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.54 billion. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The company's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.16 earnings per share. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, research analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Investors 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 yield of 3.4%. The ex-dividend date of this dividend is Friday, November 7th. Paychex's dividend payout ratio 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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