Principle Wealth Partners LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Principle Wealth Partners LLC purchased a new stake in Paychex, Inc., acquiring 3,141 shares valued at approximately $457,000 during Q2.
• Several analysts have recently adjusted their price targets for Paychex, with Citigroup setting a neutral rating and a target of $139.00 and Morgan Stanley raising their target from $132.00 to $133.00.
• Paychex announced a quarterly dividend of $1.08, equating to an annual yield of 3.5%, to be paid on November 26th.

Principle Wealth Partners LLC purchased a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 3,141 shares of the business services provider's stock, valued at approximately $457,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Summit Wealth Partners LLC lifted its position in shares of Paychex by 2.4% in the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock worth $467,000 after buying an additional 70 shares during the last quarter. LGT Group Foundation lifted its position in shares of Paychex by 2.8% during the 1st quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock worth $390,000 after purchasing an additional 70 shares during the last quarter. King Wealth Management Group lifted its position in shares of Paychex by 4.7% during the 1st quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock worth $257,000 after purchasing an additional 75 shares during the last quarter. Sunflower Bank N.A. lifted its position in shares of Paychex by 3.4% during the 2nd quarter. Sunflower Bank N.A. now owns 2,305 shares of the business services provider's stock worth $335,000 after purchasing an additional 75 shares during the last quarter. Finally, Asset Dedication LLC lifted its position in shares of Paychex by 12.1% during the 1st quarter. Asset Dedication LLC now owns 711 shares of the business services provider's stock worth $110,000 after purchasing an additional 77 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Citigroup assumed coverage on Paychex in a research report on Thursday. They set a "neutral" rating and a $139.00 price objective for the company. Morgan Stanley boosted their price objective on Paychex from $132.00 to $133.00 and gave the stock an "equal weight" rating in a research report on Monday. Robert W. Baird cut their price objective on Paychex from $153.00 to $148.00 and set a "neutral" rating for the company in a research report on Wednesday, October 1st. Jefferies Financial Group set a $130.00 price objective on Paychex in a research report on Tuesday, September 30th. Finally, UBS Group cut their price objective on Paychex from $140.00 to $132.00 and set a "neutral" rating for the company in a research report on Thursday, October 2nd. One analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $139.87.

Paychex Trading Down 1.5%

Shares of PAYX opened at $124.75 on Friday. Paychex, Inc. has a 12-month low of $119.02 and a 12-month high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $44.90 billion, a price-to-earnings ratio of 28.03, a P/E/G ratio of 2.89 and a beta of 0.92. The stock's 50-day moving average price is $131.64 and its 200 day moving average price is $142.27.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.02. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The firm had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same period in the previous year, the company posted $1.16 earnings per share. The company's quarterly revenue was up 16.8% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, research analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Friday, November 7th. Paychex's dividend payout ratio is currently 97.08%.

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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