MTM Investment Management LLC Boosts Stock Position in Paychex, Inc. $PAYX

MTM Investment Management LLC grew its stake in Paychex, Inc. (NASDAQ:PAYX) by 19.1% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,481 shares of the business services provider’s stock after acquiring an additional 558 shares during the quarter. MTM Investment Management LLC’s holdings in Paychex were worth $506,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Martin Capital Partners LLC lifted its stake in Paychex by 166.9% during the second quarter. Martin Capital Partners LLC now owns 6,340 shares of the business services provider’s stock worth $922,000 after purchasing an additional 3,965 shares in the last quarter. Arkadios Wealth Advisors lifted its position in shares of Paychex by 8.6% during the 2nd 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. MWA Asset Management boosted its position in shares of Paychex by 6.5% during the 1st quarter. MWA Asset Management now owns 4,269 shares of the business services provider’s stock worth $659,000 after acquiring an additional 262 shares in the last quarter. Two Point Capital Management Inc. acquired a new stake in Paychex during the second quarter worth approximately $8,761,000. Finally, Midwest Trust Co purchased a new stake in Paychex in the second quarter valued at $5,202,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Up 0.3%

PAYX opened at $112.10 on Friday. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.27 and a current ratio of 1.27. The company has a market cap of $40.34 billion, a PE ratio of 25.19, a price-to-earnings-growth ratio of 2.68 and a beta of 0.93. The firm has a 50 day moving average price of $124.53 and a 200 day moving average price of $139.09. Paychex, Inc. has a 1 year low of $109.99 and a 1 year high of $161.24.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results 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 firm had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The firm’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.16 EPS. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. Sell-side analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th will be issued a $1.08 dividend. The ex-dividend date is Friday, November 7th. This represents a $4.32 dividend on an annualized basis and a yield of 3.9%. Paychex’s payout ratio is currently 97.08%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on PAYX. Citigroup began coverage on shares of Paychex in a research report on Thursday, October 23rd. They set a “neutral” rating and a $139.00 target price on the stock. BMO Capital Markets dropped their price objective on Paychex from $143.00 to $140.00 and set a “market perform” rating on the stock in a report on Wednesday, October 1st. Morgan Stanley boosted their price target on Paychex from $132.00 to $133.00 and gave the stock an “equal weight” rating in a research note on Monday, October 20th. JPMorgan Chase & Co. cut their target price 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. Finally, Wells Fargo & Company raised Paychex to a “strong sell” rating in a research note on Wednesday, October 22nd. Thirteen investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $139.87.

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.