Wendell David Associates Inc. Sells 3,012 Shares of Paychex, Inc. $PAYX

Key Points

• Wendell David Associates Inc. has reduced its position in Paychex, Inc. by 9.9% in Q2, selling 3,012 shares, leaving them with 27,303 shares valued at approximately $3.97 million.
• Paychex reported earnings of $1.22 per share in its latest quarter, exceeding analysts' expectations, with revenue up 16.8% year-over-year.
• The company announced a quarterly dividend of $1.08, set to be paid on November 26th, which reflects an annualized dividend yield of 3.4% and a payout ratio of 97.08%.

Wendell David Associates Inc. reduced its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 9.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 27,303 shares of the business services provider's stock after selling 3,012 shares during the quarter. Wendell David Associates Inc.'s holdings in Paychex were worth $3,972,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. MorganRosel Wealth Management LLC bought a new position in Paychex in the 1st quarter valued at about $34,000. Quarry LP bought a new stake in shares of Paychex during the 1st quarter valued at approximately $34,000. Alpine Bank Wealth Management bought a new stake in shares of Paychex during the 1st quarter valued at approximately $34,000. Tsfg LLC grew its holdings in shares of Paychex by 122.3% during the 1st 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 last quarter. Finally, Nova Wealth Management Inc. bought a new stake in shares of Paychex during the 1st quarter valued at approximately $38,000. 83.47% of the stock is owned by institutional investors.

Paychex Trading Up 0.1%

PAYX opened at $126.56 on Friday. Paychex, Inc. has a fifty-two week low of $119.02 and a fifty-two week high of $161.24. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27. The firm has a market capitalization of $45.55 billion, a price-to-earnings ratio of 28.44, a PEG ratio of 2.89 and a beta of 0.92. The company's 50 day moving average price is $132.52 and its two-hundred day moving average price is $142.78.

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

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be paid a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Friday, November 7th. Paychex's dividend payout ratio is currently 97.08%.

Analysts Set New Price Targets

PAYX has been the topic of several research reports. TD Cowen decreased their price target on shares of Paychex from $140.00 to $126.00 and set a "hold" rating on the stock in a report on Wednesday, October 1st. Royal Bank Of Canada set a $165.00 price target on shares of Paychex and gave the company a "sector perform" rating in a report on Tuesday, June 24th. Citigroup decreased their price target 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. Morgan Stanley decreased their price target on shares of Paychex from $148.00 to $132.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 1st. Finally, Stephens raised shares of Paychex to a "hold" rating in a report on Tuesday, October 7th. One investment analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $141.29.

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.

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