Swedbank AB Grows Position in Paychex, Inc. $PAYX

Swedbank AB raised its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 8.3% in the 1st quarter, HoldingsChannel.com reports. The firm owned 197,221 shares of the business services provider’s stock after purchasing an additional 15,065 shares during the quarter. Swedbank AB’s holdings in Paychex were worth $18,168,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in PAYX. Vermillion & White Wealth Management Group LLC acquired a new stake in shares of Paychex during the 3rd quarter worth $27,000. Cornerstone Planning Group LLC grew its position in Paychex by 957.1% during 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 during the period. Stance Capital LLC purchased a new stake in Paychex during the third quarter valued at about $31,000. Hilton Head Capital Partners LLC acquired a new stake in Paychex during the fourth quarter worth about $31,000. Finally, Kingdom Financial Group LLC. acquired a new stake in Paychex during the fourth quarter worth about $33,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Price Performance

Shares of PAYX stock opened at $106.26 on Friday. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $148.11. The company has a market capitalization of $38.07 billion, a PE ratio of 21.73 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm has a fifty day simple moving average of $97.89 and a 200-day simple moving average of $98.42.

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

Paychex Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were paid a dividend of $1.19 per share. This is an increase from Paychex’s previous quarterly dividend of $1.08. The ex-dividend date was Wednesday, May 13th. This represents a $4.76 annualized dividend and a dividend yield of 4.5%. Paychex’s dividend payout ratio (DPR) is currently 97.34%.

Analyst Ratings Changes

Several research firms have recently weighed in on PAYX. Guggenheim started coverage on Paychex in a research note on Thursday, March 19th. They issued a “neutral” rating on the stock. Morgan Stanley increased their target price on shares of Paychex from $107.00 to $109.00 and gave the stock an “equal weight” rating in a research report on Tuesday, June 30th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Paychex in a research note on Friday, April 24th. Finally, TD Cowen increased their price objective 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. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $105.80.

Insider Buying and Selling at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.80% of the company’s stock.

Key Headlines Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks Research raised several forward earnings estimates for Paychex, including FY2027 EPS to $5.92, FY2028 EPS to $6.22, FY2029 EPS to $6.69, and Q1/Q2/Q3 2027 estimates in multiple quarters, signaling improved confidence in the company’s long-term earnings power.
• Positive Sentiment: The company is being highlighted as one of the Nasdaq 100’s highest-yielding stocks, which may attract dividend-focused investors looking for reliable passive income and total return potential. The Nasdaq 100’s 5 Highest-Yielding Stocks Are Hot Summer Picks
• Neutral Sentiment: One recent investor article, “The Toughest Questions PAYX Faced On Its Latest Call,” suggests the latest earnings call drew scrutiny, but no specific negative operational issue was provided in the feed. The Toughest Questions PAYX Faced On Its Latest Call
• Neutral Sentiment: Some Zacks revisions were mixed quarter-to-quarter, with a few short-term estimates trimmed even as longer-term forecasts improved, leaving the overall analyst message balanced rather than uniformly bullish.

Paychex Company 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.