Paychex, Inc. $PAYX Shares Purchased by Twin Tree Management LP

Key Points

• Twin Tree Management LP increased its holdings in Paychex, Inc. by 33.7% during the 1st quarter, bringing its total position to approximately $2.41 million.
• Several institutional investors, including GAMMA Investing LLC and Goldman Sachs Group Inc., significantly increased their holdings, indicating strong interest in Paychex.
• Paychex recently declared a quarterly dividend of $1.08 per share, representing an annualized yield of 3.1% with a dividend payout ratio of 94.53%.

Twin Tree Management LP increased its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 33.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 15,647 shares of the business services provider's stock after purchasing an additional 3,947 shares during the period. Twin Tree Management LP's holdings in Paychex were worth $2,414,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. grew its stake in Paychex by 0.9% in the 1st 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 during the period. Charles Schwab Investment Management Inc. grew its stake in Paychex by 7.3% in the 1st 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 acquiring an additional 737,542 shares during the period. Northern Trust Corp grew its stake in Paychex by 3.8% in the 1st quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock worth $769,731,000 after acquiring an additional 181,628 shares during the period. Invesco Ltd. grew its stake in Paychex by 0.7% in the 1st quarter. Invesco Ltd. now owns 4,135,296 shares of the business services provider's stock worth $637,993,000 after acquiring an additional 30,670 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Paychex by 14.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,130,781 shares of the business services provider's stock worth $438,998,000 after acquiring an additional 401,552 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Trading Down 0.2%

Shares of NASDAQ PAYX traded down $0.33 during trading on Wednesday, hitting $135.63. 1,549,203 shares of the company traded hands, compared to its average volume of 1,994,196. Paychex, Inc. has a 1 year low of $128.92 and a 1 year high of $161.24. The company has a 50-day moving average price of $141.87 and a 200-day moving average price of $147.24. The firm has a market capitalization of $48.86 billion, a P/E ratio of 29.68, a P/E/G ratio of 3.19 and a beta of 0.91. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.19. Paychex had a net margin of 29.75% and a return on equity of 45.01%. The company had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same period in the previous year, the company earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. On average, equities analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend was Monday, July 21st. Paychex's dividend payout ratio is 94.53%.

Insiders Place Their Bets

In related news, 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 completion of the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the sale, the chairman directly owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.40% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms have commented on PAYX. Jefferies Financial Group set a $140.00 target price on shares of Paychex and gave the stock a "hold" rating in a research note on Thursday, June 26th. Morgan Stanley lowered their target price on shares of Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Friday, June 27th. Stifel Nicolaus lowered their target price on shares of Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research note on Thursday, June 26th. Royal Bank Of Canada set a $165.00 target price on shares of Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. Finally, BMO Capital Markets initiated coverage on shares of Paychex in a research note on Thursday, July 10th. They issued a "market perform" rating and a $160.00 target price for the company. Ten research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $149.70.

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.