QRG Capital Management Inc. Lowers Position in Paychex, Inc. $PAYX

QRG Capital Management Inc. trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 29.3% in the third quarter, Holdings Channel reports. The firm owned 46,268 shares of the business services provider’s stock after selling 19,143 shares during the period. QRG Capital Management Inc.’s holdings in Paychex were worth $5,865,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the stock. Arkadios Wealth Advisors boosted its holdings in shares of Paychex by 8.6% in the 2nd quarter. Arkadios Wealth Advisors now owns 53,974 shares of the business services provider’s stock valued at $7,851,000 after buying an additional 4,254 shares in the last quarter. Invesco Ltd. raised its stake in Paychex by 6.0% during the 2nd 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 in the last quarter. Aberdeen Group plc lifted its position in Paychex by 10.8% in the second quarter. Aberdeen Group plc now owns 255,076 shares of the business services provider’s stock valued at $36,716,000 after acquiring an additional 24,820 shares during the last quarter. Midwest Trust Co acquired a new position in Paychex in the second quarter valued at $5,202,000. Finally, Tectonic Advisors LLC boosted its stake in Paychex by 18.1% in the third quarter. Tectonic Advisors LLC now owns 67,903 shares of the business services provider’s stock valued at $8,607,000 after acquiring an additional 10,386 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Up 0.6%

PAYX stock opened at $111.18 on Friday. Paychex, Inc. has a one year low of $107.80 and a one year high of $161.24. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The company has a fifty day moving average of $112.25 and a 200-day moving average of $126.36. The stock has a market capitalization of $39.91 billion, a PE ratio of 25.21 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 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 the consensus estimate of $1.55 billion. During the same quarter last year, the firm earned $1.14 earnings per share. The firm’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. As a group, analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th will be given a $1.08 dividend. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 3.9%. Paychex’s dividend payout ratio is presently 97.96%.

Paychex declared that its board has authorized a share buyback program on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on PAYX shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Morgan Stanley cut their price target on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. Royal Bank Of Canada decreased their price objective on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a report on Friday, December 5th. Stifel Nicolaus cut their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a report on Wednesday, December 17th. Finally, TD Cowen decreased their price target on shares of Paychex from $126.00 to $114.00 and set a “hold” rating for the company in a research note on Monday, December 1st. One research analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $125.67.

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.