Paychex, Inc. $PAYX Shares Purchased by Rathbones Group PLC

Rathbones Group PLC boosted its position in Paychex, Inc. (NASDAQ:PAYX) by 13.7% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 182,224 shares of the business services provider’s stock after buying an additional 21,945 shares during the period. Rathbones Group PLC’s holdings in Paychex were worth $23,099,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Heartwood Wealth Advisors LLC acquired a new stake in Paychex in the third quarter valued at $25,000. MMA Asset Management LLC acquired a new position in shares of Paychex during the 3rd quarter worth $32,000. Westfuller Advisors LLC purchased a new position in shares of Paychex in the 3rd quarter valued at about $35,000. Caitlin John LLC purchased a new position in shares of Paychex in the 3rd quarter valued at about $36,000. Finally, E Fund Management Hong Kong Co. Ltd. lifted its stake in shares of Paychex by 193.2% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 346 shares of the business services provider’s stock valued at $44,000 after purchasing an additional 228 shares during the period. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Stock Up 2.5%

Shares of NASDAQ PAYX opened at $100.85 on Monday. Paychex, Inc. has a 12-month low of $86.89 and a 12-month high of $161.24. The company has a market capitalization of $36.20 billion, a PE ratio of 22.87 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The firm’s 50-day moving average is $102.25 and its two-hundred day moving average is $115.32.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. During the same period last year, the company posted $1.14 EPS. The company’s revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were given a dividend of $1.08 per share. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.3%. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

Paychex announced that its Board of Directors has initiated a stock buyback plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages have weighed in on PAYX. Stephens lowered their target price on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. BMO Capital Markets decreased their price target on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Wolfe Research reduced their price objective on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. Finally, Royal Bank Of Canada decreased their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $123.94.

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.