Hendershot Investments Inc. Acquires 4,847 Shares of Paychex, Inc. $PAYX

Hendershot Investments Inc. raised its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 6.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 76,692 shares of the business services provider’s stock after purchasing an additional 4,847 shares during the quarter. Hendershot Investments Inc.’s holdings in Paychex were worth $7,065,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PAYX. Vermillion & White Wealth Management Group LLC bought a new position in shares of Paychex in the third quarter valued at about $27,000. Stance Capital LLC bought a new stake in shares of Paychex during the 3rd quarter worth about $31,000. Hilton Head Capital Partners LLC bought a new stake in shares of Paychex during the 4th quarter worth about $31,000. KERR FINANCIAL PLANNING Corp acquired a new position in Paychex in the 3rd quarter valued at about $37,000. Finally, Cornerstone Planning Group LLC grew its stake in Paychex by 957.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after buying an additional 268 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have weighed in on PAYX shares. Guggenheim began coverage on shares of Paychex in a report on Thursday, March 19th. They issued a “neutral” rating on the stock. UBS Group decreased their target price on Paychex from $100.00 to $98.00 and set a “neutral” rating on the stock in a research report on Thursday, June 25th. Jefferies Financial Group lowered their target price on Paychex from $110.00 to $105.00 and set a “hold” rating on the stock in a research note on Thursday, March 26th. Wells Fargo & Company dropped their price target on Paychex from $116.00 to $95.00 and set an “underweight” rating for the company in a report on Thursday, March 26th. Finally, TD Cowen boosted their price target on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research note on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $105.80.

Paychex Price Performance

NASDAQ:PAYX opened at $106.35 on Friday. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.11. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The firm’s 50-day simple moving average is $96.60 and its 200 day simple moving average is $98.76. The firm has a market cap of $38.10 billion, a price-to-earnings ratio of 21.75 and a beta of 0.84.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data 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. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the previous year, the firm posted $1.19 EPS. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts predict that Paychex, Inc. will post 5.97 earnings per share for the current year.

Paychex Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were paid a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.5%. This is an increase from Paychex’s previous quarterly dividend of $1.08. The ex-dividend date was Wednesday, May 13th. Paychex’s dividend payout ratio is presently 97.34%.

Insider Activity

In related news, Director Joseph M. Tucci sold 3,907 shares of the business’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 value of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.80% of the company’s stock.

Paychex Profile

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.