Paychex, Inc. $PAYX Position Lifted by Mattern Capital Management LLC

Key Points

• Mattern Capital Management LLC increased its Paychex stake by 45.8% in the first quarter, buying 33,710 additional shares and bringing its holdings to 107,298 shares worth about $9.9 million.
• Analysts are mixed on Paychex: recent updates included a Citigroup upgrade to buy, while the overall consensus remains Hold with a price target of $105.80.
• Paychex reported quarterly EPS of $1.32, slightly above estimates, and raised its dividend to $1.19 per share, implying an annualized yield of about 4.3%.

Mattern Capital Management LLC lifted its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 45.8% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 107,298 shares of the business services provider's stock after purchasing an additional 33,710 shares during the period. Mattern Capital Management LLC's holdings in Paychex were worth $9,884,000 as of its most recent filing with the SEC.

A number of other hedge funds have also bought and sold shares of the company. 44 Wealth Management LLC grew its position in shares of Paychex by 2.7% during the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock valued at $479,000 after buying an additional 86 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in Paychex by 3.5% in the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock worth $381,000 after acquiring an additional 89 shares during the last quarter. JPL Wealth Management LLC lifted its holdings in Paychex by 0.3% in the third quarter. JPL Wealth Management LLC now owns 27,686 shares of the business services provider's stock worth $3,509,000 after acquiring an additional 92 shares during the last quarter. Greenleaf Trust boosted its stake in Paychex by 1.7% in the fourth quarter. Greenleaf Trust now owns 5,834 shares of the business services provider's stock valued at $654,000 after acquiring an additional 95 shares during the period. Finally, Prosperity Consulting Group LLC boosted its stake in Paychex by 1.4% in the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider's stock valued at $922,000 after acquiring an additional 100 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on PAYX. Argus upgraded Paychex to a "strong-buy" rating in a research report on Friday, March 27th. Jefferies Financial Group reduced their price objective on Paychex from $110.00 to $105.00 and set a "hold" rating for the company in a research report on Thursday, March 26th. Citigroup upgraded Paychex from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $99.00 to $140.00 in a research note on Monday, June 15th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Paychex in a research report on Thursday, May 28th. Finally, UBS Group cut their target price on Paychex from $100.00 to $98.00 and set a "neutral" rating on the stock in a research note on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $105.80.

Insider Transactions at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.80% of the company's stock.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $110.75 on Tuesday. The firm's 50 day moving average is $98.53 and its two-hundred day moving average is $98.34. The firm has a market capitalization of $39.68 billion, a P/E ratio of 22.65 and a beta of 0.84. 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 52 week low of $85.45 and a 52 week high of $148.11.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the previous year, the firm posted $1.19 earnings per share. The business's revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were given a dividend of $1.19 per share. This is a boost from Paychex's previous quarterly dividend of $1.08. The ex-dividend date was Wednesday, May 13th. This represents a $4.76 dividend on an annualized basis and a yield of 4.3%. Paychex's payout ratio is presently 97.34%.

Paychex 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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