Key Points
- Director Joseph Velli sold 7,839 Paychex shares at an average price of $107.68, generating approximately $844,000 and reducing his ownership by 8.75%.
- Paychex reported quarterly EPS of $1.34, exceeding estimates by $0.02, while revenue rose 5.9% year over year to $1.63 billion.
- The company declared a quarterly dividend of $1.19 per share, equal to an annualized $4.76 payout and an indicated yield of about 4.3%; analysts maintain a consensus “Hold” rating.
Paychex, Inc. (NASDAQ:PAYX - Get Free Report) Director Joseph Velli sold 7,839 shares of the stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $107.68, for a total transaction of $844,103.52. Following the transaction, the director owned 81,725 shares in the company, valued at approximately $8,800,148. This trade represents a 8.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.
Paychex Stock Up 0.8%
Shares of Paychex stock traded up $0.85 during midday trading on Friday, reaching $111.63. 5,508,803 shares of the company's stock traded hands, compared to its average volume of 3,687,478. The company has a market cap of $39.74 billion, a price-to-earnings ratio of 22.15, a price-to-earnings-growth ratio of 2.32 and a beta of 0.86. The company's 50 day simple moving average is $114.57 and its 200 day simple moving average is $105.16. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.28 and a current ratio of 1.28. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $128.78.
Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.02. The business had revenue of $1.63 billion during 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%. Paychex's quarterly 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 EPS. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Equities analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.
Paychex Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Monday, October 26th will be issued a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a yield of 4.3%. The ex-dividend date is Monday, October 26th. Paychex's dividend payout ratio (DPR) is 94.44%.
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in the business. Parkside Financial Bank & Trust lifted its holdings in shares of Paychex by 6.3% during the second quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider's stock worth $149,000 after buying an additional 90 shares during the last quarter. Armbruster Capital Management Inc. boosted its position in shares of Paychex by 0.5% in the first quarter. Armbruster Capital Management Inc. now owns 20,299 shares of the business services provider's stock valued at $1,870,000 after acquiring an additional 107 shares during the period. Seelaus Asset Management LLC grew its stake in shares of Paychex by 2.0% in the first quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider's stock worth $503,000 after acquiring an additional 107 shares during the last quarter. United Community Bank grew its stake in shares of Paychex by 3.1% in the second quarter. United Community Bank now owns 3,635 shares of the business services provider's stock worth $357,000 after acquiring an additional 110 shares during the last quarter. Finally, Bryn Mawr Trust Advisors LLC grew its stake in shares of Paychex by 4.3% in the first quarter. Bryn Mawr Trust Advisors LLC now owns 2,678 shares of the business services provider's stock worth $247,000 after acquiring an additional 111 shares during the last quarter. 83.47% of the stock is owned by institutional investors.
Analyst Ratings Changes
A number of brokerages have recently weighed in on PAYX. Cantor Fitzgerald reduced their price objective on shares of Paychex from $112.00 to $96.00 and set an "underweight" rating for the company in a research note on Monday, September 28th. Guggenheim reiterated a "neutral" rating on shares of Paychex in a research note on Thursday, September 17th. Wolfe Research upgraded shares of Paychex from an "underperform" rating to a "peer perform" rating in a research note on Wednesday, September 16th. Wells Fargo & Company lifted their target price on shares of Paychex from $95.00 to $111.00 and gave the stock an "underweight" rating in a report on Wednesday, September 9th. Finally, Stephens cut their target price on shares of Paychex from $132.00 to $113.00 and set an "equal weight" rating for the company in a research report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Paychex currently has a consensus rating of "Hold" and a consensus price target of $127.59.
Get Our Latest Stock Report on Paychex
Trending Headlines about Paychex
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.
Paychex Company Profile
(
Get Free Report)
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.
Further Reading
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