UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC Increases Stock Position in Paychex, Inc. $PAYX

Key Points

• UBS Asset Management has increased its stake in Paychex, Inc. by 6.3%, now owning approximately 3.33 million shares valued at $513.2 million.
• Recent analyst reports suggest a mixed outlook for Paychex, with a consensus price target of $149.70 and ratings ranging from "underweight" to "hold."
• Paychex declared a quarterly dividend of $1.08 per share, resulting in an annualized yield of 3.2% and a high dividend payout ratio of approximately 94.53%.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 6.3% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 3,326,529 shares of the business services provider's stock after purchasing an additional 195,748 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned about 0.92% of Paychex worth $513,217,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the business. Summit Wealth Partners LLC lifted its position in shares of Paychex by 2.4% during the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock worth $467,000 after purchasing an additional 70 shares in the last quarter. LGT Group Foundation lifted its position in shares of Paychex by 2.8% during the first 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 in the last quarter. Golden State Equity Partners lifted its position in shares of Paychex by 0.9% during the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after purchasing an additional 71 shares in the last quarter. Palumbo Wealth Management LLC lifted its position in shares of Paychex by 2.4% during the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after purchasing an additional 74 shares in the last quarter. Finally, King Wealth Management Group lifted its position in shares of Paychex by 4.7% during the first 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 in the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Down 0.3%

Paychex stock traded down $0.35 during mid-day trading on Friday, hitting $135.11. The company had a trading volume of 1,305,369 shares, compared to its average volume of 1,876,443. The stock has a market cap of $48.59 billion, a price-to-earnings ratio of 29.56, a PEG ratio of 3.10 and a beta of 0.91. Paychex, Inc. has a 1 year low of $131.83 and a 1 year high of $161.24. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. The business has a fifty day moving average of $140.44 and a 200 day moving average of $146.55.

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

Paychex Announces Dividend

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

Wall Street Analyst Weigh In

PAYX has been the topic of several research reports. Royal Bank Of Canada set a $165.00 price target on shares of Paychex and gave the stock a "sector perform" rating in a research report on Tuesday, June 24th. Jefferies Financial Group set a $140.00 target price on shares of Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. BMO Capital Markets assumed coverage on shares of Paychex in a report on Thursday, July 10th. They issued a "market perform" rating and a $160.00 target price on the stock. Citigroup reduced their target price on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a report on Thursday, August 21st. Finally, Barclays set a $155.00 target price on shares of Paychex and gave the company an "equal weight" rating in a report on Tuesday, June 24th. Ten investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Paychex presently has a consensus rating of "Reduce" and an average target price of $149.70.

Insider Activity at Paychex

In other Paychex news, CEO John B. Gibson sold 12,370 shares of the stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the transaction, the chief executive officer directly owned 81,755 shares in the company, valued at $11,602,669.60. This represents a 13.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the transaction, the chairman owned 446,917 shares in the company, valued at $64,878,940.89. This represents a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.80% of the company's stock.

About Paychex

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.