XXEC Inc. Takes $3.03 Million Position in Paychex, Inc. $PAYX

Key Points

• XXEC Inc. disclosed a new position in Paychex during the first quarter, buying 32,927 shares worth about $3.03 million. The stock now represents 0.6% of XXEC’s portfolio.
• Paychex reported better-than-expected quarterly results, with EPS of $1.32 on revenue of $1.61 billion. Revenue rose 12.5% year over year, and the company also raised its quarterly dividend to $1.19 per share.
• Wall Street sentiment remains cautious: analysts have an average “Hold” rating with a consensus price target of $105.80. Meanwhile, Paychex shares were trading around $98.33, near their 50-day and 200-day moving averages.

XXEC Inc. bought a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 32,927 shares of the business services provider's stock, valued at approximately $3,033,000. Paychex makes up 0.6% of XXEC Inc.'s portfolio, making the stock its 21st biggest position.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex during the 3rd quarter valued at approximately $27,000. Cornerstone Planning Group LLC increased its stake in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after purchasing an additional 268 shares during the period. Stance Capital LLC bought a new stake in Paychex during the 3rd quarter valued at $31,000. Hilton Head Capital Partners LLC acquired a new stake in Paychex in the fourth quarter worth about $31,000. Finally, Kingdom Financial Group LLC. acquired a new position in shares of Paychex during the fourth quarter valued at approximately $33,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

PAYX has been the subject of several research analyst reports. Morgan Stanley upped their price objective on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday. Jefferies Financial Group lowered their price objective on shares of Paychex from $110.00 to $105.00 and set a "hold" rating on the stock in a research report on Thursday, March 26th. JPMorgan Chase & Co. upped their target price on Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a report on Thursday, June 25th. Wells Fargo & Company dropped their price target on shares of Paychex from $116.00 to $95.00 and set an "underweight" rating on the stock in a research note on Thursday, March 26th. Finally, Robert W. Baird dropped their price objective on Paychex from $148.00 to $125.00 and set a "neutral" rating on the stock in a report on Thursday, March 26th. One 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 issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $105.80.

Paychex Stock Performance

NASDAQ:PAYX opened at $98.33 on Wednesday. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $148.76. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market cap of $35.23 billion, a price-to-earnings ratio of 20.11 and a beta of 0.84. The firm's 50-day moving average is $95.90 and its 200-day moving average is $98.86.

Paychex (NASDAQ:PAYX - Get Free Report) last announced 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. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the company earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Equities research analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were given a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 4.8%. This is a boost from Paychex's previous quarterly dividend of $1.08. The ex-dividend date of this dividend was Wednesday, May 13th. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Insider Activity

In other news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director directly owned 67,364 shares of the company's stock, valued at approximately $6,618,513. This represents a 5.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.80% of the company's stock.

About Paychex

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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