Paychex, Inc. $PAYX Shares Acquired by Wealth Enhancement Advisory Services LLC

Key Points

• Wealth Enhancement Advisory Services LLC significantly increased its stake in Paychex, purchasing an additional 141,215 shares, which brought its total ownership to approximately 260,506 shares valued at $38.3 million.
• Paychex recently declared a quarterly dividend of $1.08 per share, translating to an annualized dividend yield of 3.3% and a payout ratio of 94.53%.
• The company achieved earnings of $1.19 per share for the last quarter, meeting analysts' expectations with a revenue of $1.43 billion, surpassing the consensus estimate of $1.38 billion.

Wealth Enhancement Advisory Services LLC increased its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 118.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 260,506 shares of the business services provider's stock after purchasing an additional 141,215 shares during the period. Wealth Enhancement Advisory Services LLC owned approximately 0.07% of Paychex worth $38,328,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in PAYX. Alpine Bank Wealth Management purchased a new position in shares of Paychex during the first quarter worth $34,000. MorganRosel Wealth Management LLC acquired a new stake in shares of Paychex in the first quarter valued at about $34,000. Quarry LP acquired a new stake in shares of Paychex in the first quarter valued at about $34,000. Tsfg LLC grew its position in shares of Paychex by 122.3% in the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after purchasing an additional 126 shares during the period. Finally, Nova Wealth Management Inc. acquired a new stake in shares of Paychex in the first quarter valued at about $38,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insider Activity at Paychex

In related news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 81,755 shares of the company's stock, 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 accessible through this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction that occurred 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 in the company, valued at approximately $64,878,940.89. The trade was a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.80% of the stock is owned by corporate insiders.

Paychex Trading Down 0.6%

Shares of Paychex stock traded down $0.74 on Tuesday, reaching $129.66. The company had a trading volume of 251,313 shares, compared to its average volume of 2,186,434. The firm's 50 day moving average price is $138.80 and its two-hundred day moving average price is $145.65. The firm has a market cap of $46.63 billion, a PE ratio of 28.39, a PEG ratio of 2.98 and a beta of 0.91. Paychex, Inc. has a 52-week low of $128.23 and a 52-week high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.19. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate 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 previous year, the firm earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. Sell-side analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Monday, July 21st. Paychex's dividend payout ratio is presently 94.53%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on PAYX shares. UBS Group dropped their target price on shares of Paychex from $148.00 to $140.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Citigroup lowered their price target on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research report on Thursday, August 21st. 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. Stifel Nicolaus decreased their target price on shares of Paychex from $152.00 to $142.00 and set a "hold" rating on the stock in a report on Monday. Finally, Royal Bank Of Canada set a $165.00 target price on shares of Paychex and gave the company a "sector perform" rating in a report on Tuesday, June 24th. Ten research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Paychex currently has a consensus rating of "Reduce" and a consensus price target of $148.20.

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.