Godsey & Gibb Inc. Raises Stake in Paychex, Inc. $PAYX

Godsey & Gibb Inc. grew its holdings in Paychex, Inc. (NASDAQ:PAYX) by 2.3% in the second quarter, according to its most recent disclosure with the SEC. The fund owned 159,027 shares of the business services provider’s stock after buying an additional 3,509 shares during the period. Paychex accounts for approximately 2.2% of Godsey & Gibb Inc.’s portfolio, making the stock its 22nd largest position. Godsey & Gibb Inc.’s holdings in Paychex were worth $23,132,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Alpine Bank Wealth Management purchased a new stake in shares of Paychex in the first quarter valued at approximately $34,000. MorganRosel Wealth Management LLC purchased a new position in shares of Paychex in the 1st quarter valued at about $34,000. Quarry LP purchased a new stake in Paychex during the first quarter worth about $34,000. Tsfg LLC grew its position in Paychex by 122.3% during the first quarter. Tsfg LLC now owns 229 shares of the business services provider’s stock worth $35,000 after buying an additional 126 shares during the period. Finally, Nova Wealth Management Inc. acquired a new stake in shares of Paychex during the 1st quarter valued at approximately $38,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Paychex

In related news, CEO John B. Gibson sold 12,370 shares of the business’s stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the transaction, the chief executive officer owned 81,755 shares of the company’s stock, valued at approximately $11,602,669.60. The trade was a 13.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total value of $14,157,849.42. Following the sale, the chairman directly owned 446,917 shares in the company, valued at $64,878,940.89. The trade was a 17.91% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is owned by corporate insiders.

Paychex Trading Down 0.2%

Paychex stock opened at $124.37 on Tuesday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.15. Paychex, Inc. has a 12 month low of $119.02 and a 12 month high of $161.24. The company’s fifty day simple moving average is $135.23 and its 200-day simple moving average is $144.24. The stock has a market cap of $44.76 billion, a P/E ratio of 27.95, a P/E/G ratio of 2.85 and a beta of 0.92.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.02. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The firm had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter in the prior year, the company posted $1.16 earnings per share. The firm’s revenue was up 16.8% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, sell-side analysts forecast that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were given a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend was Monday, July 21st. Paychex’s payout ratio is currently 97.08%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on PAYX shares. Morgan Stanley dropped their price objective on Paychex from $148.00 to $132.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 1st. Wolfe Research decreased their price objective on shares of Paychex from $145.00 to $140.00 and set an “underperform” rating on the stock in a research report on Friday, September 26th. Stephens set a $135.00 target price on shares of Paychex and gave the company a “neutral” rating in a research note on Monday. Barclays set a $155.00 target price on Paychex and gave the stock an “equal weight” rating in a research report on Tuesday, June 24th. Finally, Jefferies Financial Group set a $130.00 price objective on shares of Paychex in a research note on Tuesday, September 30th. Thirteen analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $141.29.

Paychex Company Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), 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.