Western Wealth Management LLC Buys New Position in Paychex, Inc. $PAYX

Key Points

• Western Wealth Management initiated a Paychex position of 12,749 shares valued at approximately $1.17 million in the first quarter. Institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex exceeded quarterly expectations, reporting $1.32 in EPS and $1.61 billion in revenue, with revenue up 12.5% year over year. The company issued fiscal 2027 EPS guidance of $5.90–$6.01.
• Paychex declared a quarterly dividend of $1.19 per share, equivalent to a 4.1% annualized yield, while analysts maintain a consensus “Hold” rating with an average price target of $108.20.

Western Wealth Management LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 12,749 shares of the business services provider's stock, valued at approximately $1,174,000.

Several other hedge funds also recently modified their holdings of PAYX. Paragon Private Wealth Management LLC grew its stake in Paychex by 28.9% during the 1st quarter. Paragon Private Wealth Management LLC now owns 8,723 shares of the business services provider's stock valued at $804,000 after acquiring an additional 1,958 shares in the last quarter. Royal Fund Management LLC increased its holdings in Paychex by 8.7% in the first quarter. Royal Fund Management LLC now owns 30,629 shares of the business services provider's stock worth $2,825,000 after buying an additional 2,459 shares during the last quarter. Kentucky Retirement Systems increased its holdings in Paychex by 32.5% in the first quarter. Kentucky Retirement Systems now owns 26,835 shares of the business services provider's stock worth $2,472,000 after buying an additional 6,576 shares during the last quarter. Bull Harbor Capital LLC bought a new position in Paychex during the first quarter valued at approximately $644,000. Finally, Strategic Investment Advisors MI acquired a new stake in Paychex in the first quarter valued at approximately $1,205,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Performance

PAYX stock opened at $116.84 on Monday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $146.83. The company has a market cap of $41.56 billion, a P/E ratio of 23.89 and a beta of 0.81. The business's fifty day moving average is $104.42 and its 200-day moving average is $98.51.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the business posted $1.19 earnings per share. The firm's quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Equities research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. TD Cowen boosted their price target on Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research report on Monday, June 8th. Stifel Nicolaus raised their price objective on Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. Citigroup boosted their target price on Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday. Weiss Ratings raised Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Finally, Morgan Stanley increased their price target on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $108.20.

Insider Transactions at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by company insiders.

Paychex Profile

Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

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