Paychex, Inc. $PAYX Stock Sold by Envestnet Asset Management Inc.

Key Points

• Envestnet Asset Management reduced its Paychex stake by 0.4%, selling 10,469 shares and retaining 2.76 million shares worth approximately $271.8 million. Institutional investors collectively own 83.47% of the company.
• Paychex reported adjusted EPS of $1.34, beating estimates, while revenue rose 5.9% year over year to $1.63 billion. However, its core Management Solutions segment grew only 4%, and management maintained—not raised—full-year revenue and EPS guidance.
• Shares opened at $101.59, down 2.8%, amid several analyst price-target cuts and a consensus “Hold” rating. Paychex continues to offer a $1.19 quarterly dividend, equivalent to a 4.7% yield, though its payout ratio is high at 97.34%.

Envestnet Asset Management Inc. reduced its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 0.4% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,764,004 shares of the business services provider's stock after selling 10,469 shares during the quarter. Envestnet Asset Management Inc. owned approximately 0.78% of Paychex worth $271,785,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC purchased a new stake in Paychex in the fourth quarter valued at approximately $31,000. Leonteq Securities AG raised its position in shares of Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock worth $33,000 after buying an additional 347 shares during the period. Field & Main Bank acquired a new position in Paychex in the second quarter valued at $33,000. Castleark Management LLC acquired a new position in Paychex in the second quarter valued at $35,000. Finally, Elevation Wealth Partners LLC grew its position in Paychex by 45.5% during the second quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider's stock valued at $39,000 after acquiring an additional 125 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex reported adjusted earnings of $1.34 per share, ahead of the roughly $1.32–$1.33 consensus, while revenue rose 5.9% year over year to $1.63 billion. Operating margin expanded to 38.0%, and operating income increased 14%. Paychex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: PEO and Insurance Solutions revenue grew 12% to $367.6 million, prompting Paychex to raise that segment’s fiscal 2027 growth outlook to 7%–8% from 6%–7%. The company also launched WISE Hire, an agentic AI recruiting product intended to accelerate hiring and expand its AI-enabled HR offerings. Paychex Introduces Agentic AI Recruiting Capabilities
• Neutral Sentiment: Management maintained fiscal 2027 revenue-growth guidance of 5%–6% and adjusted EPS growth guidance of 7%–9%, implying EPS of approximately $5.896–$6.006. Second-quarter revenue guidance was broadly in line with analyst expectations.
• Negative Sentiment: Management Solutions, Paychex’s largest segment, grew only 4% to about $1.2 billion—below the pace investors expected and below the segment’s full-year 5%–6% outlook. The unchanged companywide outlook therefore failed to provide evidence of near-term acceleration, weighing on the stock despite the headline earnings beat. Paychex Slides as Core Segment Growth Disappoints
• Negative Sentiment: Several analysts lowered their price targets, including Stephens to $113, Stifel to $112, Jefferies to $110 and UBS to $115, generally retaining hold, equal-weight or neutral ratings. Investors also raised concerns about weaker GAAP earnings and free cash flow relative to adjusted results, while debate continues over dividend coverage. Analyst Forecast Revisions

Paychex Stock Down 2.8%

Shares of NASDAQ PAYX opened at $101.59 on Friday. The stock has a fifty day moving average price of $118.78 and a 200 day moving average price of $104.10. 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 12-month low of $85.45 and a 12-month high of $130.32. The company has a market cap of $36.13 billion, a P/E ratio of 20.16, a P/E/G ratio of 2.40 and a beta of 0.82.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.63 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Research analysts anticipate that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were issued a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is presently 97.34%.

Wall Street Analyst Weigh In

PAYX has been the subject of several research analyst reports. Guggenheim restated a "neutral" rating on shares of Paychex in a research note on Thursday, September 17th. JPMorgan Chase & Co. raised Paychex from an "underweight" rating to a "neutral" rating and lifted their price objective for the company from $105.00 to $115.00 in a research note on Thursday. UBS Group decreased their target price on Paychex from $125.00 to $115.00 and set a "neutral" rating for the company in a report on Thursday. Citigroup increased their target price on shares of Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald restated an "underweight" rating and issued a $107.00 price target on shares of Paychex in a report on Monday, July 20th. One investment 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 stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $129.82.

Insiders Place Their Bets

In related news, CFO Robert Schrader sold 2,600 shares of Paychex 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 owned 18,547 shares of the company's stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.60% of the company's stock.

About Paychex

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers' compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.

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