Tectonic Advisors LLC Grows Stake in Paychex, Inc. $PAYX

Key Points

• Tectonic Advisors LLC increased its stake in Paychex, Inc. by 10.2% in the second quarter, now owning 57,517 shares valued at $8.37 million.
• Multiple hedge funds have also heightened their investments in Paychex, indicating strong institutional interest, with 83.47% of shares held by institutional investors.
• Analysts have lowered their price targets for Paychex recently, with the average target now at $141.29, emphasizing a mix of neutral and hold ratings among professionals.

Tectonic Advisors LLC boosted its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 10.2% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 57,517 shares of the business services provider's stock after purchasing an additional 5,312 shares during the period. Tectonic Advisors LLC's holdings in Paychex were worth $8,366,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of PAYX. Summit Wealth Partners LLC boosted 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 period. LGT Group Foundation lifted its stake in shares of Paychex by 2.8% in the first quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock worth $390,000 after acquiring an additional 70 shares in the last quarter. Golden State Equity Partners lifted its stake in shares of Paychex by 0.9% in the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after acquiring an additional 71 shares in the last quarter. Palumbo Wealth Management LLC lifted its stake in shares of Paychex by 2.4% in the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after acquiring an additional 74 shares in the last quarter. Finally, King Wealth Management Group lifted its stake in shares of Paychex by 4.7% in the first quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock worth $257,000 after acquiring an additional 75 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently commented on the company. Argus cut their price target on Paychex from $170.00 to $150.00 in a research note on Thursday, October 2nd. Citigroup cut their price target on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Morgan Stanley cut their price target on Paychex from $148.00 to $132.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 1st. TD Cowen cut their price target on Paychex from $140.00 to $126.00 and set a "hold" rating on the stock in a research note on Wednesday, October 1st. Finally, Stephens initiated coverage on Paychex in a research note on Monday. They issued an "equal weight" rating and a $135.00 price target on the stock. One investment analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $141.29.

Insider Activity at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly owned 81,755 shares of the company's stock, valued at approximately $11,602,669.60. This represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.80% of the company's stock.

Paychex Trading Down 0.3%

Shares of NASDAQ PAYX opened at $126.59 on Thursday. The stock's 50 day moving average price is $134.43 and its two-hundred day moving average price is $143.99. Paychex, Inc. has a 52-week low of $119.02 and a 52-week high of $161.24. The stock has a market capitalization of $45.56 billion, a P/E ratio of 28.45, a PEG ratio of 2.90 and a beta of 0.92. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data 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 analysts' expectations of $1.54 billion. During the same quarter in the prior year, the firm posted $1.16 earnings per share. Paychex's revenue for the quarter was up 16.8% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

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.

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