Paychex, Inc. $PAYX Position Increased by Russell Investments Group Ltd.

Russell Investments Group Ltd. boosted its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 10.1% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 312,141 shares of the business services provider’s stock after purchasing an additional 28,674 shares during the quarter. Russell Investments Group Ltd.’s holdings in Paychex were worth $39,629,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Paychex by 17.2% in the third quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock worth $4,787,151,000 after buying an additional 5,549,511 shares during the period. State Street Corp boosted its holdings in shares of Paychex by 2.6% during the second quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock valued at $2,046,050,000 after acquiring an additional 355,294 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in shares of Paychex by 2.3% during the second quarter. Charles Schwab Investment Management Inc. now owns 11,033,312 shares of the business services provider’s stock valued at $1,604,906,000 after acquiring an additional 251,139 shares during the period. Geode Capital Management LLC grew its position in shares of Paychex by 2.8% during the second quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock worth $1,481,053,000 after acquiring an additional 274,947 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of Paychex by 6.0% during the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock worth $637,820,000 after acquiring an additional 249,550 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $94.00 on Thursday. The stock has a market cap of $33.74 billion, a P/E ratio of 21.32 and a beta of 0.91. The firm’s 50-day simple moving average is $101.21 and its 200 day simple moving average is $114.57. Paychex, Inc. has a fifty-two week low of $86.89 and a fifty-two week high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same quarter in the prior year, the firm posted $1.14 EPS. Paychex’s revenue was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

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

Paychex announced that its board has authorized a share repurchase program on Friday, January 16th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several analysts recently weighed in on PAYX shares. TD Cowen reiterated a “hold” rating on shares of Paychex in a research report on Monday, December 1st. JPMorgan Chase & Co. decreased their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Stephens dropped 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. Jefferies Financial Group set a $110.00 price target on Paychex in a report on Friday, December 19th. Finally, Morgan Stanley reduced their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $123.94.

About Paychex

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.