Vanguard Personalized Indexing Management LLC Boosts Stock Position in Paychex, Inc. $PAYX

Key Points

• Vanguard Personalized Indexing Management LLC increased its stake in Paychex, Inc. by 11.8%, now holding 64,592 shares worth approximately $9.4 million.
• Paychex reported a quarterly EPS of $1.22, exceeding estimates and showing a 16.8% year-over-year revenue increase.
• CEO John B. Gibson sold 12,370 shares at about $141.92 each, reducing his ownership by 13.14% to 81,755 shares.

Vanguard Personalized Indexing Management LLC raised its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 11.8% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 64,592 shares of the business services provider's stock after purchasing an additional 6,822 shares during the period. Vanguard Personalized Indexing Management LLC's holdings in Paychex were worth $9,397,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also added to or reduced their stakes in PAYX. Select Equity Group L.P. boosted its holdings in Paychex by 99.0% in the first quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock worth $539,102,000 after acquiring an additional 1,738,372 shares in the last quarter. Nuveen LLC acquired a new stake in Paychex in the first quarter worth about $134,192,000. Charles Schwab Investment Management Inc. boosted its holdings in Paychex by 7.3% in the first 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 in the last quarter. Neuberger Berman Group LLC boosted its holdings in Paychex by 117.6% in the first quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider's stock worth $187,512,000 after acquiring an additional 657,871 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in Paychex by 25.7% in the first quarter. Goldman Sachs Group Inc. now owns 2,844,949 shares of the business services provider's stock worth $438,919,000 after acquiring an additional 581,410 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Transactions at Paychex

In other Paychex news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the sale, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.80% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several brokerages have weighed in on PAYX. Morgan Stanley lowered their price target on Paychex from $148.00 to $132.00 and set an "equal weight" rating for the company in a report on Wednesday, October 1st. Stifel Nicolaus lowered their price target on Paychex from $142.00 to $137.00 and set a "hold" rating for the company in a report on Wednesday, October 1st. Stephens raised Paychex to a "hold" rating in a report on Tuesday, October 7th. Jefferies Financial Group set a $130.00 price target on Paychex in a report on Tuesday, September 30th. Finally, JPMorgan Chase & Co. decreased their target price on Paychex from $153.00 to $140.00 and set an "underweight" rating for the company in a report on Wednesday, October 1st. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Paychex presently has a consensus rating of "Reduce" and an average target price of $141.29.

Paychex Stock Up 0.3%

Paychex stock opened at $125.55 on Monday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27. Paychex, Inc. has a 12 month low of $119.02 and a 12 month high of $161.24. The stock has a market capitalization of $45.18 billion, a PE ratio of 28.21, a price-to-earnings-growth ratio of 2.87 and a beta of 0.92. The business has a 50 day simple moving average of $133.78 and a 200-day simple moving average of $143.63.

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

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th will be issued a $1.08 dividend. This represents a $4.32 annualized dividend and a yield of 3.4%. The ex-dividend date is Friday, November 7th. Paychex's dividend payout ratio is presently 97.08%.

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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