Martin Capital Partners LLC Raises Position in Paychex, Inc. $PAYX

Key Points

• Martin Capital Partners increased its Paychex position by 666.5% in the second quarter, adding 46,697 shares to hold 53,703 shares valued at approximately $5.28 million. Institutional investors own 83.47% of Paychex.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $108.20, despite recent target increases from UBS, Citigroup, Stifel Nicolaus, and TD Cowen.
• Paychex reported quarterly revenue growth of 12.5% and earnings of $1.32 per share, edging past estimates. The company also declared a quarterly dividend of $1.19 per share, representing a 4.0% annualized yield.

Martin Capital Partners LLC raised its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 666.5% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 53,703 shares of the business services provider's stock after buying an additional 46,697 shares during the quarter. Paychex comprises about 1.9% of Martin Capital Partners LLC's holdings, making the stock its 29th largest position. Martin Capital Partners LLC's holdings in Paychex were worth $5,281,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in shares of Paychex by 12.1% during the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares during the last quarter. LBP AM SA grew its position 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 acquiring an additional 22,527 shares in the last quarter. Tectonic Advisors LLC increased its stake in Paychex by 17.4% in the fourth quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock valued at $8,942,000 after acquiring an additional 11,805 shares during the last quarter. Danske Bank A S increased its stake in Paychex by 14.0% in 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 acquiring an additional 25,184 shares during the last quarter. Finally, Comerica Bank raised its position in 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 in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. UBS Group lifted their price target on Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Citigroup increased their price objective on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Stifel Nicolaus increased their price target on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. Finally, TD Cowen lifted their price target on shares of Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research note on Monday, June 8th. One research 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 issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $108.20.

Paychex Stock Up 0.8%

PAYX opened at $118.66 on Wednesday. The company has a market cap of $42.20 billion, a P/E ratio of 24.27 and a beta of 0.81. The business's 50-day moving average price is $105.32 and its 200-day moving average price is $98.62. 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 $141.89.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the prior year, the business posted $1.19 EPS. Paychex's quarterly revenue 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 analysts expect that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

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

Insider Buying and Selling

In related news, Director Joseph M. Tucci sold 3,907 shares of the company's 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 $6,618,513. This represents a 5.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the stock in a transaction 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 sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $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. Corporate insiders own 0.80% of the company's stock.

About Paychex

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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