Ghe LLC Cuts Stock Position in Paychex, Inc. $PAYX

Ghe LLC trimmed its holdings in Paychex, Inc. (NASDAQ:PAYX) by 45.8% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 10,587 shares of the business services provider’s stock after selling 8,960 shares during the quarter. Ghe LLC’s holdings in Paychex were worth $975,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the business. Vermillion & White Wealth Management Group LLC bought a new stake in shares of Paychex in the 3rd quarter valued at about $27,000. Cornerstone Planning Group LLC grew its position in Paychex by 957.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock worth $30,000 after acquiring an additional 268 shares during the last quarter. Stance Capital LLC purchased a new position in Paychex in the 3rd quarter worth approximately $31,000. Hilton Head Capital Partners LLC bought a new stake in Paychex in the fourth quarter valued at approximately $31,000. Finally, Kingdom Financial Group LLC. purchased a new stake in shares of Paychex during the fourth quarter valued at approximately $33,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Stock Performance

Shares of PAYX opened at $107.54 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. The business’s 50 day moving average price is $98.16 and its 200-day moving average price is $98.37. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11. The stock has a market cap of $38.53 billion, a P/E ratio of 21.99 and a beta of 0.84.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.19 earnings per share. 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 fiscal year.

Paychex Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were paid a $1.19 dividend. This is a boost from Paychex’s previous quarterly dividend of $1.08. The ex-dividend date was Wednesday, May 13th. This represents a $4.76 annualized dividend and a dividend yield of 4.4%. Paychex’s dividend payout ratio (DPR) is currently 97.34%.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks Research lifted multiple earnings estimates for Paychex (PAYX), including FY2027 and FY2029, signaling improved profit expectations and a potentially supportive outlook for the stock.
• Positive Sentiment: Paychex was highlighted among the Nasdaq 100’s highest-yielding stocks, which may attract income-focused investors looking for defensive dividend names.
• Neutral Sentiment: Short-interest data showed no reported short interest, so there is no clear evidence of a meaningful bearish positioning shift in the shares.
• Negative Sentiment: A separate article said Paychex (PAYX) could be as much as 38% below fair value after removal from the Russell Growth Index, suggesting the recent move may be partly tied to index-related repricing and raising valuation concerns. Article Title

Analyst Upgrades and Downgrades

PAYX has been the topic of a number of recent analyst reports. Robert W. Baird cut their price target on shares of Paychex from $148.00 to $125.00 and set a “neutral” rating on the stock in a report on Thursday, March 26th. Argus raised Paychex to a “strong-buy” rating in a research note on Friday, March 27th. Weiss Ratings restated a “hold (c-)” rating on shares of Paychex in a report on Friday, April 24th. TD Cowen upped their price target on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Finally, Stephens dropped their price objective on Paychex from $125.00 to $105.00 and set an “equal weight” rating for the company in a report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $105.80.

Insider Buying and Selling at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.80% of the stock is 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.