Paychex, Inc. $PAYX Position Cut by Mcdonald Capital Investors Inc. CA

Key Points

• Mcdonald Capital Investors cut its Paychex position by 9.8% in the third quarter, selling 76,086 shares and retaining 696,450 shares worth approximately $68.6 million. Institutional investors collectively own 83.47% of the company.
• Paychex reported quarterly EPS of $1.34, slightly above estimates, while revenue rose 5.9% year over year to $1.63 billion. The company declared a quarterly dividend of $1.19 per share, representing a 4.4% annualized yield.
• Analyst sentiment remains cautious: several firms lowered their price targets, and the stock carries a consensus “Hold” rating with a $127.59 target. Growth concerns, including modest Management Solutions revenue growth and Paycor integration costs, continue to weigh on sentiment.

Mcdonald Capital Investors Inc. CA lessened its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 9.8% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 696,450 shares of the business services provider's stock after selling 76,086 shares during the period. Paychex comprises 5.6% of Mcdonald Capital Investors Inc. CA's portfolio, making the stock its 9th largest position. Mcdonald Capital Investors Inc. CA owned 0.20% of Paychex worth $68,600,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Asset Management One Co. Ltd. grew its stake in Paychex by 2.1% during the 3rd quarter. Asset Management One Co. Ltd. now owns 153,229 shares of the business services provider's stock worth $15,093,000 after buying an additional 3,199 shares during the last quarter. Latitude Advisors LLC acquired a new stake in Paychex in the third quarter worth $41,000. Miller Howard Investments Inc. NY lifted its stake in Paychex by 2.5% in the third quarter. Miller Howard Investments Inc. NY now owns 516,109 shares of the business services provider's stock valued at $50,837,000 after buying an additional 12,486 shares during the last quarter. Hourglass Capital LLC bought a new stake in Paychex in the third quarter valued at $5,776,000. Finally, V Square Quantitative Management LLC lifted its stake in 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 buying an additional 229 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Down 5.6%

Shares of PAYX opened at $109.26 on Wednesday. The firm has a market capitalization of $38.89 billion, a PE ratio of 21.68 and a beta of 0.86. The firm has a 50-day moving average price of $113.52 and a 200 day moving average price of $103.65. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $127.98.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same period in the prior year, the company posted $1.22 earnings per share. The company's revenue was up 5.9% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, equities analysts expect that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Monday, October 26th will be paid a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Monday, October 26th. Paychex's dividend payout ratio (DPR) is presently 94.44%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Stifel Nicolaus reduced their price target on shares of Paychex from $130.00 to $112.00 and set a "hold" rating for the company in a report on Thursday, September 24th. Wells Fargo & Company increased their price objective on shares of Paychex from $95.00 to $111.00 and gave the stock an "underweight" rating in a report on Wednesday, September 9th. Robert W. Baird cut their price objective on shares of Paychex from $125.00 to $110.00 and set a "neutral" rating on the stock in a research report on Monday, September 28th. Stephens reduced their target price on shares of Paychex from $132.00 to $113.00 and set an "equal weight" rating for the company in a research note on Thursday, September 24th. Finally, Wolfe Research upgraded shares of Paychex from an "underperform" rating to a "peer perform" rating in a research report on Wednesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $127.59.

Paychex News Summary

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Dividend and recurring revenue provide support. A bullish investment thesis highlights Paychex’s recurring payroll and HR-services revenue, strong profitability, and shareholder distributions as potential reasons for long-term investor confidence to recover. Paychex dividend moat and recurring revenue article
• Positive Sentiment: Shareholder payout remains meaningful. Paychex is scheduled to distribute approximately $423.6 million to shareholders on November 25, reinforcing its income-oriented appeal. Paychex dividend payout article
• Positive Sentiment: Industry recognition supports the brand. Paychex was named to Inc.’s 2026 Power Partners list, with recognition covering Paychex Flex, Paycor, and SurePayroll. The award may help validate customer demand and product quality, although it is unlikely to materially change near-term earnings. Paychex named an Inc. Power Partner
• Neutral Sentiment: Institutional positioning is mixed. Recent filings showed substantial purchases by firms including Sixth Street Partners, Invesco, and JPMorgan, but other investors—including Capital Research and Ameriprise—reduced or exited positions. This suggests differing views on Paychex’s valuation and growth prospects.
• Negative Sentiment: Growth concerns remain the primary pressure. Fiscal first-quarter revenue increased about 6% to $1.63 billion and adjusted EPS rose 10% to $1.34, but Management Solutions revenue grew only 4%. Full-year revenue-growth guidance remained at 5% to 6%, which investors viewed as insufficiently strong.
• Negative Sentiment: Analyst targets and insider activity weigh on sentiment. Several analysts lowered targets, with a reported six-analyst median of $107. In addition, six reported insider transactions were sales and none were purchases. Continuing Paycor integration costs also raise concerns about margins and execution. Paychex growth and analyst target analysis

Insider Transactions at Paychex

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

Paychex Profile

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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