Compass Capital Management Inc. Buys New Stake in Paychex, Inc. $PAYX

Compass Capital Management Inc. purchased a new stake in Paychex, Inc. (NASDAQ:PAYX) during the second quarter, according to its most recent filing with the SEC. The fund purchased 3,720 shares of the business services provider’s stock, valued at approximately $541,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Arkadios Wealth Advisors lifted its stake in Paychex by 8.6% in the second quarter. Arkadios Wealth Advisors now owns 53,974 shares of the business services provider’s stock worth $7,851,000 after purchasing an additional 4,254 shares during the last quarter. Martin Capital Partners LLC raised its holdings in shares of Paychex by 166.9% in the second quarter. Martin Capital Partners LLC now owns 6,340 shares of the business services provider’s stock worth $922,000 after buying an additional 3,965 shares during the period. MWA Asset Management boosted its holdings in Paychex by 6.5% during the 1st quarter. MWA Asset Management now owns 4,269 shares of the business services provider’s stock valued at $659,000 after acquiring an additional 262 shares during the period. Two Point Capital Management Inc. purchased a new position in Paychex during the 2nd quarter valued at $8,761,000. Finally, Dynamic Technology Lab Private Ltd bought a new position in Paychex in the 1st quarter valued at $832,000. Institutional investors own 83.47% of the company’s stock.

Paychex Price Performance

Shares of PAYX opened at $111.96 on Monday. The company has a 50 day moving average price of $127.05 and a 200-day moving average price of $140.21. Paychex, Inc. has a fifty-two week low of $110.70 and a fifty-two week high of $161.24. The stock has a market capitalization of $40.29 billion, a PE ratio of 25.16, a PEG ratio of 2.68 and a beta of 0.93. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.27 and a current ratio of 1.27.

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

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be given a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Friday, November 7th. Paychex’s payout ratio is presently 97.08%.

Analyst Ratings Changes

PAYX has been the subject of several research analyst reports. Morgan Stanley lifted their target price on Paychex from $132.00 to $133.00 and gave the stock an “equal weight” rating in a research report on Monday, October 20th. Argus decreased their price objective on shares of Paychex from $170.00 to $150.00 in a report on Thursday, October 2nd. JPMorgan Chase & Co. lowered their price objective on shares of Paychex from $153.00 to $140.00 and set an “underweight” rating for the company in a research report on Wednesday, October 1st. Stephens raised shares of Paychex to a “hold” rating in a research report on Tuesday, October 7th. Finally, Robert W. Baird lowered their price target on Paychex from $153.00 to $148.00 and set a “neutral” rating for the company in a report on Wednesday, October 1st. One analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $139.87.

Paychex 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.