Paychex (NASDAQ:PAYX) Director Joseph Velli Sells 7,839 Shares of Stock

Paychex, Inc. (NASDAQ:PAYX) Director Joseph Velli sold 7,839 shares of the firm’s stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $107.68, for a total transaction of $844,103.52. Following the completion of the transaction, the director owned 81,725 shares of the company’s stock, valued at approximately $8,800,148. The trade was a 8.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Paychex Trading Up 0.8%

Shares of Paychex stock traded up $0.85 during trading on Friday, hitting $111.63. The stock had a trading volume of 5,508,803 shares, compared to its average volume of 3,687,478. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $128.78. The stock has a 50 day simple moving average of $114.57 and a 200 day simple moving average of $105.16. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.23. The company has a market capitalization of $39.74 billion, a PE ratio of 22.15, a P/E/G ratio of 2.32 and a beta of 0.86.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.32 by $0.02. The business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The firm’s revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, research analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Monday, October 26th will be paid a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Monday, October 26th. Paychex’s payout ratio is 94.44%.

Hedge Funds Weigh In On Paychex

Several institutional investors and hedge funds have recently modified their holdings of PAYX. V Square Quantitative Management LLC raised its stake in shares of Paychex by 2.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 11,684 shares of the business services provider’s stock worth $1,151,000 after purchasing an additional 229 shares in the last quarter. Tompkins Financial Corp lifted its holdings in shares of Paychex by 2.6% during the 3rd quarter. Tompkins Financial Corp now owns 14,099 shares of the business services provider’s stock valued at $1,389,000 after buying an additional 359 shares during the last quarter. Rockland Trust Co. grew its stake in shares of Paychex by 6.3% in the 3rd quarter. Rockland Trust Co. now owns 13,293 shares of the business services provider’s stock valued at $1,309,000 after buying an additional 792 shares in the last quarter. State Street Corp grew its stake in shares of Paychex by 2.6% in the 2nd quarter. State Street Corp now owns 14,411,341 shares of the business services provider’s stock valued at $1,417,067,000 after buying an additional 361,713 shares in the last quarter. Finally, Talon Private Wealth LLC acquired a new position in Paychex in the second quarter worth approximately $220,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PAYX has been the subject of several recent analyst reports. Stephens decreased their target price on Paychex from $132.00 to $113.00 and set an “equal weight” rating for the company in a research report on Thursday, September 24th. Bank of America lowered their price target on Paychex from $450.00 to $225.00 in a report on Wednesday, July 15th. Raymond James Financial raised Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 price target on the stock in a research report on Thursday, July 16th. JPMorgan Chase & Co. raised Paychex from an “underweight” rating to a “neutral” rating and increased their price objective for the stock from $105.00 to $115.00 in a research note on Thursday, September 24th. Finally, UBS Group decreased their price objective on Paychex from $125.00 to $115.00 and set a “neutral” rating for the company in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $127.59.

More Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex unveiled its first agentic HR compliance specialist, an AI-powered tool designed to help employers manage complex regulatory requirements. The product could improve Paychex’s competitive position, increase customer engagement and create additional growth opportunities. Paychex Unveils First Agentic HR Compliance Specialist
• Positive Sentiment: Coverage highlighted the potential for Paychex’s AI compliance launch to enhance shareholder value, with one analysis estimating the stock could be significantly undervalued. The opportunity is especially relevant given Paychex’s established customer base and recurring-revenue business model. Paychex Stock Could Be 40% Undervalued As AI Compliance Tool Launches
• Positive Sentiment: The board declared a regular quarterly dividend of $1.19 per share, payable November 25 to shareholders of record October 26. The $4.76 annualized payout represents an indicated yield of approximately 4.3%, reinforcing Paychex’s appeal to income-focused investors. Paychex Declares Quarterly Dividend
• Neutral Sentiment: Paychex’s dividend history remains a key part of its investment case, although recent commentary noted that the stock has lagged despite steady dividend growth. This creates a potentially attractive income valuation but also raises questions about the pace of capital appreciation. Paychex Builds Fortress of Steady Dividend Growth While Stock Struggles
• Negative Sentiment: Director Joseph Velli sold 7,839 shares for approximately $844,000, reducing his direct ownership by 8.75%. While a single insider sale does not necessarily indicate deteriorating fundamentals, it may modestly weigh on sentiment.

About Paychex

Paychex, Inc (NASDAQ: PAYX) provides payroll, human resources and employee benefits solutions for businesses of varying sizes. Its services are designed to help employers manage workforce administration, compliance and employee-related processes through integrated software and professional support.

The company’s offerings include payroll processing, time and attendance tracking, human resources administration, recruiting and onboarding tools, benefits administration, retirement services, workers’ compensation and business insurance solutions.