Darwin Wealth Management LLC Grows Stock Position in Paychex, Inc. (NASDAQ:PAYX)

Darwin Wealth Management LLC lifted its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 40.9% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 3,295 shares of the business services provider's stock after purchasing an additional 956 shares during the quarter. Darwin Wealth Management LLC's holdings in Paychex were worth $389,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in PAYX. Fairfield Bush & CO. acquired a new stake in shares of Paychex in the first quarter valued at approximately $269,000. Vontobel Holding Ltd. increased its holdings in shares of Paychex by 35.7% in the first quarter. Vontobel Holding Ltd. now owns 5,455 shares of the business services provider's stock valued at $747,000 after purchasing an additional 1,436 shares during the last quarter. Sei Investments Co. increased its holdings in shares of Paychex by 118.3% in the first quarter. Sei Investments Co. now owns 91,985 shares of the business services provider's stock valued at $12,554,000 after purchasing an additional 49,851 shares during the last quarter. Prudential PLC acquired a new stake in shares of Paychex in the first quarter valued at approximately $1,019,000. Finally, Brighton Jones LLC acquired a new stake in shares of Paychex in the first quarter valued at approximately $237,000. Institutional investors and hedge funds own 72.18% of the company's stock.

Paychex Stock Performance

Shares of Paychex stock traded up $0.68 on Monday, hitting $116.65. The stock had a trading volume of 894,773 shares, compared to its average volume of 1,930,116. Paychex, Inc. has a 52-week low of $104.09 and a 52-week high of $129.70. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.23. The stock has a market cap of $42.11 billion, a price-to-earnings ratio of 26.97, a P/E/G ratio of 3.39 and a beta of 0.98. The company's 50 day moving average price is $122.26 and its 200 day moving average price is $114.19.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its earnings results on Thursday, June 29th. The business services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. Paychex had a return on equity of 46.79% and a net margin of 31.10%. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the business earned $0.81 EPS. The business's quarterly revenue was up 6.7% on a year-over-year basis. On average, research analysts anticipate that Paychex, Inc. will post 4.68 EPS for the current year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 24th. Stockholders of record on Thursday, August 10th were issued a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 3.05%. The ex-dividend date was Wednesday, August 9th. Paychex's payout ratio is currently 82.79%.

Insider Activity

In related news, VP Michael E. Gioja sold 45,810 shares of the business's stock in a transaction dated Tuesday, August 1st. The stock was sold at an average price of $124.96, for a total value of $5,724,417.60. Following the transaction, the vice president now owns 19,800 shares in the company, valued at approximately $2,474,208. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, Director Joseph M. Tucci sold 10,850 shares of the business's stock in a transaction dated Monday, July 10th. The stock was sold at an average price of $115.99, for a total value of $1,258,491.50. Following the transaction, the director now owns 53,460 shares in the company, valued at approximately $6,200,825.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Michael E. Gioja sold 45,810 shares of the business's stock in a transaction dated Tuesday, August 1st. The shares were sold at an average price of $124.96, for a total value of $5,724,417.60. Following the completion of the transaction, the vice president now owns 19,800 shares in the company, valued at approximately $2,474,208. The disclosure for this sale can be found here. In the last three months, insiders sold 221,916 shares of company stock valued at $26,789,753. Insiders own 11.50% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. VNET Group reissued a "maintains" rating on shares of Paychex in a research note on Friday, June 30th. 3M reissued an "initiates" rating on shares of Paychex in a research note on Friday, June 2nd. JPMorgan Chase & Co. raised their target price on Paychex from $114.00 to $134.00 and gave the stock an "underweight" rating in a research note on Tuesday, August 22nd. Morgan Stanley reissued an "equal weight" rating and set a $125.00 target price on shares of Paychex in a research note on Friday, June 30th. Finally, Royal Bank of Canada assumed coverage on Paychex in a research note on Tuesday, September 5th. They set a "sector perform" rating and a $130.00 target price for the company. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $123.12.

About Paychex

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, 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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