Miramar Capital LLC Boosts Position in Paychex, Inc. $PAYX

Miramar Capital LLC raised its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 17.7% in the third quarter, according to its most recent 13F filing with the SEC. The fund owned 77,339 shares of the business services provider’s stock after buying an additional 11,608 shares during the period. Paychex comprises about 2.2% of Miramar Capital LLC’s portfolio, making the stock its 26th largest holding. Miramar Capital LLC’s holdings in Paychex were worth $9,803,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also modified their holdings of the stock. ABC Arbitrage SA raised its holdings in Paychex by 61.4% in the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock worth $3,576,000 after purchasing an additional 10,726 shares during the period. GSA Capital Partners LLP acquired a new stake in Paychex in the third quarter valued at approximately $1,877,000. Summit Global Investments increased its position in shares of Paychex by 1,938.2% in the third quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock valued at $6,103,000 after buying an additional 45,781 shares in the last quarter. Alps Advisors Inc. raised its stake in shares of Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock worth $30,494,000 after buying an additional 41,114 shares during the period. Finally, Invesco Ltd. lifted its position in shares of Paychex by 6.0% during the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after buying an additional 249,550 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Up 0.6%

NASDAQ PAYX opened at $94.25 on Tuesday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The business’s fifty day simple moving average is $103.60 and its 200-day simple moving average is $116.47. Paychex, Inc. has a 52 week low of $86.89 and a 52 week high of $161.24. The firm has a market cap of $33.83 billion, a PE ratio of 21.37 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same quarter in the previous year, the company earned $1.14 EPS. The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

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

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is 97.96%.

Wall Street Analysts Forecast Growth

PAYX has been the subject of several recent analyst reports. JPMorgan Chase & Co. cut their price target on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a report on Monday, December 22nd. Stifel Nicolaus cut their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a research note on Wednesday, December 17th. Stephens decreased their price target on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. TD Cowen reiterated a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Finally, Wells Fargo & Company decreased their target price on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a research report on Tuesday, December 9th. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price 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.