Vantage Investment Partners LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Vantage Investment Partners acquired 119,263 Paychex shares in the third quarter, valued at approximately $11.7 million. Institutional investors and hedge funds collectively own 83.47% of Paychex.
• Paychex exceeded quarterly earnings expectations with EPS of $1.34 versus the $1.32 consensus, while revenue reached $1.63 billion and rose 5.9% year over year.
• Paychex declared a quarterly dividend of $1.19, equivalent to $4.76 annually and a 4.4% yield. Analysts maintain a consensus “Hold” rating, with an average price target of $127.59.

Vantage Investment Partners LLC bought a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 119,263 shares of the business services provider's stock, valued at approximately $11,747,000.

Other hedge funds have also made changes to their positions in the company. Asset Management One Co. Ltd. raised its stake in Paychex by 2.1% during the 3rd quarter. Asset Management One Co. Ltd. now owns 153,229 shares of the business services provider's stock valued at $15,093,000 after acquiring an additional 3,199 shares during the last quarter. Latitude Advisors LLC acquired a new stake in Paychex during the 3rd quarter worth approximately $41,000. Miller Howard Investments Inc. NY lifted its position in Paychex by 2.5% during the 3rd quarter. Miller Howard Investments Inc. NY now owns 516,109 shares of the business services provider's stock worth $50,837,000 after acquiring an additional 12,486 shares during the period. Hourglass Capital LLC purchased a new position in shares of Paychex in the 3rd quarter valued at approximately $5,776,000. Finally, V Square Quantitative Management LLC grew its stake in shares of Paychex by 2.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 11,684 shares of the business services provider's stock valued at $1,151,000 after purchasing an additional 229 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Performance

NASDAQ PAYX opened at $108.21 on Thursday. The business has a 50 day moving average price of $113.28 and a 200 day moving average price of $103.62. The company has a market capitalization of $38.52 billion, a P/E ratio of 21.47, a PEG ratio of 2.48 and a beta of 0.86. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $127.98. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.28 and a quick ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. Paychex had a return on equity of 52.78% and a net margin of 27.35%. Paychex's quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Sell-side analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, October 26th will be given a $1.19 dividend. The ex-dividend date is Monday, October 26th. This represents a $4.76 annualized dividend and a dividend yield of 4.4%. Paychex's payout ratio is currently 94.44%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on PAYX shares. Stifel Nicolaus dropped their target price on Paychex from $130.00 to $112.00 and set a "hold" rating on the stock in a report on Thursday, September 24th. Cantor Fitzgerald decreased their price target on Paychex from $112.00 to $96.00 and set an "underweight" rating for the company in a report on Monday, September 28th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $130.00 price target on shares of Paychex in a report on Thursday, September 24th. Wells Fargo & Company lifted their price objective on shares of Paychex from $95.00 to $111.00 and gave the company an "underweight" rating in a research report on Wednesday, September 9th. Finally, Jefferies Financial Group dropped their price objective on shares of Paychex from $120.00 to $110.00 and set a "hold" rating on the stock in a research note on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $127.59.

Insider Activity at Paychex

In related news, Director Joseph Velli sold 7,839 shares of the stock in a transaction dated Wednesday, October 14th. The shares were sold at an average price of $107.68, for a total value of $844,103.52. Following the sale, the director directly owned 81,725 shares of the company's stock, valued at approximately $8,800,148. This represents a 8.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.60% of the stock is owned by corporate insiders.

Paychex Company Profile

Paychex, Inc provides payroll, human resources and employee-benefits solutions to small and medium-sized businesses. Its offerings include payroll processing, tax administration, time and attendance management, recruiting, onboarding, human resources administration, compliance support and employee benefits services.

The company also provides retirement-plan services, insurance solutions and professional employer organization services. Through its software and outsourced services, Paychex helps employers manage workforce administration, employee data and regulatory requirements.

Paychex was founded in 1971 by B.

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