MSH Capital Advisors LLC Takes $3.06 Million Position in Paychex, Inc. $PAYX

Key Points

• MSH Capital Advisors acquired 31,104 Paychex shares during the second quarter, establishing a position worth approximately $3.06 million. Institutional investors collectively own 83.47% of the company.
• Analysts remain cautious overall, with Paychex carrying an average “Hold” rating and a consensus price target of $109.20, despite Citigroup raising its target to $150 and maintaining a “Buy” rating.
• Paychex reported quarterly EPS of $1.32 and revenue of $1.61 billion, both slightly above estimates, while revenue increased 12.5% year over year. The company declared a quarterly dividend of $1.19, equivalent to a 3.9% annualized yield.

MSH Capital Advisors LLC acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 31,104 shares of the business services provider's stock, valued at approximately $3,058,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in PAYX. Brighton Jones LLC boosted its stake in Paychex by 26.3% during the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after purchasing an additional 1,190 shares in the last quarter. Bison Wealth LLC raised its stake in shares of Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after buying an additional 117 shares in the last quarter. Woodline Partners LP bought a new stake in shares of Paychex in the 1st quarter worth $3,333,000. NewEdge Advisors LLC lifted its holdings in shares of Paychex by 3.2% in the second quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider's stock valued at $5,976,000 after buying an additional 1,290 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of Paychex by 47.1% in the second quarter. Sei Investments Co. now owns 156,680 shares of the business services provider's stock valued at $22,790,000 after buying an additional 50,169 shares during the period. Institutional investors own 83.47% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on PAYX shares. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 20th. Cantor Fitzgerald reissued an "underweight" rating and issued a $107.00 price target on shares of Paychex in a report on Monday, July 20th. Citigroup raised their price objective on shares of Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. TD Cowen lifted their price objective 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. Finally, UBS Group boosted their target price on shares of Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Paychex currently has an average rating of "Hold" and an average target price of $109.20.

Paychex Price Performance

NASDAQ PAYX opened at $122.50 on Thursday. 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 1 year low of $85.45 and a 1 year high of $141.19. The company has a market cap of $43.57 billion, a PE ratio of 25.05 and a beta of 0.81. The stock's 50-day moving average price is $110.13 and its two-hundred day moving average price is $99.70.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping the consensus estimate of $1.31 by $0.01. The company had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business's revenue for the quarter was up 12.5% on a year-over-year basis. During the same period last year, the company posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts predict that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be paid a $1.19 dividend. The ex-dividend date of this dividend is 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%.

Insider Buying and Selling

In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction that occurred 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 transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of the business's 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 in the company, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.80% of the company's stock.

Paychex Company 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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