Paychex, Inc. $PAYX Stock Position Raised by Janney Montgomery Scott LLC

Key Points

• Janney Montgomery Scott LLC raised its position in Paychex, Inc. by 17.1% during the 2nd quarter, holding approximately 258,832 shares valued at $37.65 million.
• Paychex reported earnings of $1.22 EPS for the most recent quarterly results, exceeding analysts' expectations and marking a 16.8% increase in revenue year-over-year.
• The company announced a quarterly dividend of $1.08 per share, leading to an annual dividend yield of 3.4%, with a payout ratio of 94.53%.

Janney Montgomery Scott LLC lifted its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 17.1% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 258,832 shares of the business services provider's stock after buying an additional 37,732 shares during the quarter. Janney Montgomery Scott LLC owned about 0.07% of Paychex worth $37,650,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Paychex by 0.9% in the first quarter. Vanguard Group Inc. now owns 31,807,843 shares of the business services provider's stock worth $4,907,314,000 after acquiring an additional 286,818 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Paychex by 7.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock worth $1,663,474,000 after buying an additional 737,542 shares during the last quarter. Northern Trust Corp raised its holdings in Paychex by 3.8% during the first quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock valued at $769,731,000 after buying an additional 181,628 shares in the last quarter. Invesco Ltd. lifted its position in shares of Paychex by 0.7% in the first quarter. Invesco Ltd. now owns 4,135,296 shares of the business services provider's stock worth $637,993,000 after buying an additional 30,670 shares during the last quarter. Finally, Select Equity Group L.P. boosted its stake in shares of Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock worth $539,102,000 after acquiring an additional 1,738,372 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Stock Down 1.4%

Shares of PAYX opened at $126.78 on Wednesday. Paychex, Inc. has a 52 week low of $119.02 and a 52 week high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market capitalization of $45.59 billion, a P/E ratio of 27.74, a P/E/G ratio of 2.95 and a beta of 0.91. The company has a 50-day simple moving average of $137.02 and a 200-day simple moving average of $144.86.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.20 by $0.02. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The company had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter last year, the company earned $1.16 EPS. The company's quarterly revenue was up 16.8% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, equities research analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, July 21st were given a dividend of $1.08 per share. The ex-dividend date was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a yield of 3.4%. Paychex's dividend payout ratio is presently 94.53%.

Insiders Place Their Bets

In other news, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the transaction, the chief executive officer owned 81,755 shares in the company, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $145.17, for a total value of $14,157,849.42. Following the completion of the sale, the chairman directly owned 446,917 shares in the company, valued at $64,878,940.89. This represents a 17.91% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Barclays set a $155.00 target price on Paychex and gave the stock an "equal weight" rating in a research report on Tuesday, June 24th. Wolfe Research lowered their target price on shares of Paychex from $145.00 to $140.00 and set an "underperform" rating on the stock in a research note on Friday, September 26th. JPMorgan Chase & Co. lifted their target price on shares of Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a report on Thursday, August 14th. Jefferies Financial Group set a $130.00 price target on shares of Paychex in a report on Tuesday. Finally, Citigroup dropped their price objective on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Ten research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Paychex currently has a consensus rating of "Reduce" and an average target price of $145.00.

Paychex Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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