Charles Schwab Investment Management Inc. Purchases 251,139 Shares of Paychex, Inc. $PAYX

Charles Schwab Investment Management Inc. boosted its position in Paychex, Inc. (NASDAQ:PAYX) by 2.3% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 11,033,312 shares of the business services provider’s stock after purchasing an additional 251,139 shares during the quarter. Charles Schwab Investment Management Inc.’s holdings in Paychex were worth $1,604,906,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Select Equity Group L.P. boosted its holdings in Paychex by 99.0% in the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider’s stock valued at $539,102,000 after purchasing an additional 1,738,372 shares during the period. Nuveen LLC acquired a new stake in shares of Paychex in the first quarter valued at approximately $134,192,000. Neuberger Berman Group LLC raised its position in shares of Paychex by 117.6% in the first quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider’s stock valued at $187,512,000 after buying an additional 657,871 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Paychex by 25.7% in the first quarter. Goldman Sachs Group Inc. now owns 2,844,949 shares of the business services provider’s stock valued at $438,919,000 after buying an additional 581,410 shares during the period. Finally, JPMorgan Chase & Co. grew its position in Paychex by 29.2% during the second quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider’s stock worth $369,901,000 after buying an additional 574,337 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Paychex Stock Up 2.8%

Shares of NASDAQ PAYX opened at $111.46 on Friday. The company has a market cap of $40.11 billion, a price-to-earnings ratio of 25.05, a PEG ratio of 2.68 and a beta of 0.93. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.15. Paychex, Inc. has a 12 month low of $108.00 and a 12 month high of $161.24. The stock has a 50-day moving average price of $122.06 and a two-hundred day moving average price of $137.74.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Tuesday, September 30th. The business services provider reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.02. The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The firm’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period last year, the company posted $1.16 EPS. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be issued a dividend of $1.08 per share. The ex-dividend date is Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 3.9%. Paychex’s dividend payout ratio is 97.08%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on PAYX shares. UBS Group dropped their price objective on Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a report on Thursday, October 2nd. Argus cut their price objective on shares of Paychex from $170.00 to $150.00 in a research report on Thursday, October 2nd. Wolfe Research decreased their target price on shares of Paychex from $145.00 to $140.00 and set an “underperform” rating on the stock in a report on Friday, September 26th. Stephens upgraded shares of Paychex to a “hold” rating in a research report on Tuesday, October 7th. Finally, Citigroup began coverage on shares of Paychex in a report on Thursday, October 23rd. They set a “neutral” rating and a $139.00 price target for the company. Thirteen equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Paychex has an average rating of “Reduce” and an average price target of $139.87.

About Paychex

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.