Martin Capital Partners LLC Grows Stake in Paychex, Inc. $PAYX

Martin Capital Partners LLC raised its holdings in Paychex, Inc. (NASDAQ:PAYX) by 666.5% during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 53,703 shares of the business services provider’s stock after buying an additional 46,697 shares during the quarter. Paychex comprises 1.9% of Martin Capital Partners LLC’s investment portfolio, making the stock its 29th largest position. Martin Capital Partners LLC’s holdings in Paychex were worth $5,281,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in the business. Hilton Head Capital Partners LLC bought a new position in shares of Paychex during the fourth quarter valued at approximately $31,000. Cornerstone Planning Group LLC boosted its holdings in Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. Kingdom Financial Group LLC. bought a new stake in Paychex in the fourth quarter valued at $33,000. Acumen Wealth Advisors LLC purchased a new position in Paychex during the 4th quarter valued at $34,000. Finally, Wealth Watch Advisors INC purchased a new position in Paychex during the 3rd quarter valued at $42,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Stock Performance

Shares of PAYX stock opened at $118.66 on Wednesday. The company’s fifty day moving average price is $105.32 and its 200-day moving average price is $98.62. The stock has a market cap of $42.20 billion, a PE ratio of 24.27 and a beta of 0.81. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.89.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. The company had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. Paychex’s revenue was up 12.5% on a year-over-year basis. During the same period last year, the company posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex’s payout ratio is currently 97.34%.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. TD Cowen raised their target price on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a research report on Monday, June 8th. Stifel Nicolaus boosted their price target on shares of Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research report on Wednesday, June 17th. Weiss Ratings raised shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. Royal Bank Of Canada restated a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th. Finally, JPMorgan Chase & Co. lifted their price objective on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a research report on Thursday, June 25th. One 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 company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $108.20.

Insider Activity at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company’s stock, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer owned 18,547 shares of the company’s stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company’s stock.

About Paychex

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.