Western Wealth Management LLC Makes New $1.21 Million Investment in Paychex, Inc. $PAYX

Key Points

• Western Wealth Management invested approximately $1.21 million in Paychex during the second quarter by purchasing 12,340 shares. Institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex reported quarterly EPS of $1.32, narrowly beating estimates, while revenue rose 12.5% year over year to $1.61 billion. The company issued annualized dividends of $4.76 per share, yielding about 3.8%.
• Wall Street’s overall view remains cautious: Paychex carries a consensus “Hold” rating with an average price target of $109.20, below the reported share price of $124.99.

Western Wealth Management LLC purchased a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 12,340 shares of the business services provider's stock, valued at approximately $1,213,000.

Several other hedge funds and other institutional investors have also modified their holdings of PAYX. Vanguard Group Inc. increased its position in Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock worth $4,750,669,000 after buying an additional 4,583,157 shares during the period. Danske Bank A S grew its position in shares of Paychex by 14.0% during the fourth quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock worth $23,035,000 after acquiring an additional 25,184 shares during the last quarter. Comerica Bank grew its position in shares of Paychex by 10.4% during the fourth quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock worth $13,653,000 after acquiring an additional 11,497 shares during the last quarter. Truist Financial Corp increased its holdings in shares of Paychex by 33.3% in the 4th quarter. Truist Financial Corp now owns 208,150 shares of the business services provider's stock worth $23,350,000 after acquiring an additional 51,982 shares during the period. Finally, Oppenheimer Asset Management Inc. acquired a new stake in shares of Paychex in the 2nd quarter worth about $7,296,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Trading Down 0.8%

Paychex stock opened at $124.99 on Wednesday. The firm has a 50 day simple moving average of $112.08 and a 200-day simple moving average of $100.38. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The stock has a market capitalization of $44.46 billion, a PE ratio of 25.56 and a beta of 0.81. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $139.53.

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

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be paid a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's payout ratio is currently 97.34%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on PAYX. Stifel Nicolaus boosted their target price on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, June 17th. Morgan Stanley increased their price objective on Paychex from $107.00 to $109.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Cantor Fitzgerald restated an "underweight" rating and issued a $107.00 target price on shares of Paychex in a research report on Monday, July 20th. JPMorgan Chase & Co. lifted their target price on Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a research note on Thursday, June 25th. Finally, Jefferies Financial Group boosted their price target on Paychex from $105.00 to $120.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Paychex has an average rating of "Hold" and an average target price of $109.20.

Insider Buying and Selling at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company's stock, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.80% of the company's stock.

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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