Welch & Forbes LLC Cuts Stock Holdings in Paychex, Inc. $PAYX

Welch & Forbes LLC cut its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 1.7% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 362,116 shares of the business services provider’s stock after selling 6,357 shares during the period. Welch & Forbes LLC owned 0.10% of Paychex worth $33,358,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex in the 3rd quarter worth about $27,000. Cornerstone Planning Group LLC grew its holdings in shares of 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 purchasing an additional 268 shares during the period. Stance Capital LLC acquired a new stake in Paychex during the 3rd quarter worth approximately $31,000. Hilton Head Capital Partners LLC acquired a new stake in Paychex during the 4th quarter worth approximately $31,000. Finally, Kingdom Financial Group LLC. acquired a new stake in Paychex during the 4th quarter worth approximately $33,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Up 1.2%

Shares of NASDAQ PAYX traded up $1.28 during trading on Friday, reaching $107.54. 2,179,668 shares of the stock were exchanged, compared to its average volume of 3,609,491. The company has a market capitalization of $38.53 billion, a price-to-earnings ratio of 21.99 and a beta of 0.84. The business’s 50-day moving average price is $98.16 and its 200 day moving average price is $98.48. 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 $148.11.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating 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 during the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the business earned $1.19 EPS. The business’s revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Increases Dividend

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

Insider Activity

In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex 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 sale, the director directly owned 67,364 shares of the company’s stock, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.80% of the company’s stock.

Key Headlines Impacting 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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. UBS Group reduced their price target on shares of Paychex from $100.00 to $98.00 and set a “neutral” rating on the stock in a research report on Thursday, June 25th. Robert W. Baird decreased their price objective on shares of Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a research note on Thursday, March 26th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. BMO Capital Markets raised their target price on shares of Paychex to $52.00 and gave the company an “outperform” rating in a research note on Thursday, March 26th. Finally, Guggenheim started coverage on shares of Paychex in a report on Thursday, March 19th. They set a “neutral” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $105.80.

Paychex Company 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.