Select Equity Group L.P. Has $539.10 Million Stake in Paychex, Inc. $PAYX

Key Points

• Select Equity Group L.P. increased its stake in Paychex, Inc. by 99.0%, acquiring an additional 1,738,372 shares in the first quarter, bringing its total ownership to approximately 3.49 million shares worth about $539.10 million.
• Paychex recently declared a quarterly dividend of $1.08, which represents an annualized amount of $4.32 and a dividend yield of 3.2%, with a payout ratio of 94.53%.
• The company's latest earnings report showed EPS of $1.19 and revenue of $1.43 billion, surpassing analyst estimates, with projections indicating a FY 2026 EPS of 4.99.

Select Equity Group L.P. boosted its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 99.0% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,494,312 shares of the business services provider's stock after buying an additional 1,738,372 shares during the period. Paychex accounts for 2.3% of Select Equity Group L.P.'s portfolio, making the stock its 14th biggest holding. Select Equity Group L.P. owned about 0.97% of Paychex worth $539,102,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also bought and sold shares of PAYX. Alpine Bank Wealth Management bought a new position in Paychex during the first quarter valued at about $34,000. MorganRosel Wealth Management LLC bought a new position in Paychex during the first quarter valued at about $34,000. Quarry LP bought a new position in Paychex during the first quarter valued at about $34,000. Tsfg LLC boosted its stake in Paychex by 122.3% during the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after buying an additional 126 shares in the last quarter. Finally, HWG Holdings LP bought a new position in Paychex during the first quarter valued at about $46,000. Institutional investors own 83.47% of the company's stock.

Paychex Stock Down 0.4%

Shares of NASDAQ PAYX traded down $0.57 during mid-day trading on Friday, reaching $134.89. The company had a trading volume of 426,079 shares, compared to its average volume of 2,126,221. Paychex, Inc. has a twelve month low of $131.83 and a twelve month 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 stock has a market capitalization of $48.51 billion, a PE ratio of 29.51, a price-to-earnings-growth ratio of 3.05 and a beta of 0.91. The stock's 50 day moving average is $140.67 and its 200-day moving average is $146.66.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, hitting analysts' consensus estimates of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the company posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. As a group, equities analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were paid a $1.08 dividend. The ex-dividend date was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a yield of 3.2%. Paychex's dividend payout ratio (DPR) is presently 94.53%.

Analyst Ratings Changes

Several research analysts recently weighed in on PAYX shares. Stifel Nicolaus decreased their target price on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research note on Thursday, June 26th. UBS Group cut their target price on Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a research report on Thursday, June 26th. JPMorgan Chase & Co. boosted their target price on Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a research report on Thursday, August 14th. BMO Capital Markets started coverage on Paychex in a research report on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Finally, Royal Bank Of Canada set a $165.00 price objective on shares of Paychex and gave the company a "sector perform" rating in a research note on Tuesday, June 24th. Ten equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Paychex has a consensus rating of "Reduce" and a consensus target price of $149.70.

Insiders Place Their Bets

In related news, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on 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 transaction, the chairman directly owned 446,917 shares in the company, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction on Wednesday, July 16th. The shares were 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 of the company's stock, valued at approximately $11,602,669.60. The trade was a 13.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.80% of the company's stock.

Paychex Company 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.