Miller Howard Investments Inc. NY Acquires 12,486 Shares of Paychex, Inc. $PAYX

Key Points

• Miller Howard Investments increased its Paychex holdings by 2.5%, purchasing 12,486 additional shares to own 516,109 shares valued at approximately $50.8 million.
• Paychex reported quarterly EPS of $1.34, exceeding estimates, while revenue rose 5.9% year over year to $1.63 billion. The company also declared a quarterly dividend of $1.19, representing a 4.1% annualized yield.
• Analyst sentiment remains cautious, with Paychex receiving an overall “Hold” rating and an average price target of $127.59; institutional investors own 83.47% of the company.

Miller Howard Investments Inc. NY raised its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 2.5% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 516,109 shares of the business services provider's stock after purchasing an additional 12,486 shares during the quarter. Miller Howard Investments Inc. NY owned about 0.14% of Paychex worth $50,837,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Hourglass Capital LLC acquired a new stake in Paychex during the 3rd quarter worth approximately $5,776,000. V Square Quantitative Management LLC increased its holdings in shares of Paychex by 2.0% in the third quarter. V Square Quantitative Management LLC now owns 11,684 shares of the business services provider's stock valued at $1,151,000 after purchasing an additional 229 shares during the period. Tompkins Financial Corp increased its holdings in shares of Paychex by 2.6% in the third quarter. Tompkins Financial Corp now owns 14,099 shares of the business services provider's stock valued at $1,389,000 after purchasing an additional 359 shares during the period. Rockland Trust Co. raised its stake in shares of Paychex by 6.3% during the third quarter. Rockland Trust Co. now owns 13,293 shares of the business services provider's stock worth $1,309,000 after purchasing an additional 792 shares during the last quarter. Finally, State Street Corp raised its stake in shares of Paychex by 2.6% during the second quarter. State Street Corp now owns 14,411,341 shares of the business services provider's stock worth $1,417,067,000 after purchasing an additional 361,713 shares during the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Stock Down 2.0%

PAYX opened at $115.70 on Tuesday. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.28 and a quick ratio of 1.28. The business has a 50 day simple moving average of $113.83 and a 200-day simple moving average of $103.64. The stock has a market capitalization of $41.19 billion, a P/E ratio of 22.96, a P/E/G ratio of 2.48 and a beta of 0.86. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $127.98.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, beating analysts' consensus estimates of $1.32 by $0.02. Paychex had a return on equity of 52.78% and a net margin of 27.35%. The firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the business earned $1.22 earnings per share. The company's revenue for the quarter was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, equities analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Monday, October 26th will be issued a $1.19 dividend. The ex-dividend date of this dividend is Monday, October 26th. This represents a $4.76 dividend on an annualized basis and a yield of 4.1%. Paychex's dividend payout ratio (DPR) is 94.44%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Paychex in a report on Friday, October 16th. Cantor Fitzgerald dropped their price objective on shares of Paychex from $112.00 to $96.00 and set an "underweight" rating on the stock in a research note on Monday, September 28th. UBS Group dropped their price objective on shares of Paychex from $125.00 to $115.00 and set a "neutral" rating on the stock in a research note on Thursday, September 24th. Wells Fargo & Company upped their price objective on shares of Paychex from $95.00 to $111.00 and gave the stock an "underweight" rating in a research report on Wednesday, September 9th. Finally, Morgan Stanley upped their price objective on shares of Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Paychex has an average rating of "Hold" and an average price target of $127.59.

Insider Buying and Selling

In other Paychex news, Director Joseph Velli sold 7,839 shares of the business's stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $107.68, for a total transaction of $844,103.52. Following the sale, the director directly owned 81,725 shares in the company, valued at approximately $8,800,148. The trade was a 8.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.60% of the company's stock.

About Paychex

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.

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