Paychex, Inc. (NASDAQ:PAYX) Short Interest Update

Paychex, Inc. (NASDAQ:PAYX) was the recipient of a large growth in short interest in the month of December. As of December 31st, there was short interest totaling 17,521,215 shares, a growth of 19.1% from the December 15th total of 14,709,075 shares. Approximately 4.9% of the company’s shares are short sold. Based on an average daily trading volume, of 3,712,043 shares, the days-to-cover ratio is presently 4.7 days. Based on an average daily trading volume, of 3,712,043 shares, the days-to-cover ratio is presently 4.7 days. Approximately 4.9% of the company’s shares are short sold.

Wall Street Analyst Weigh In

Several research analysts have issued reports on PAYX shares. Cowen restated a “hold” rating on shares of Paychex in a report on Monday, December 1st. Stephens lowered their target price on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Robert W. Baird dropped their target price on shares of Paychex from $153.00 to $148.00 and set a “neutral” rating on the stock in a report on Wednesday, October 1st. TD Cowen cut their price target on shares of Paychex from $126.00 to $114.00 and set a “hold” rating on the stock in a research report on Monday, December 1st. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. One research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $125.67.

Paychex Stock Up 0.6%

PAYX traded up $0.67 during midday trading on Monday, reaching $111.18. 3,421,333 shares of the company were exchanged, compared to its average volume of 2,608,379. The company has a market cap of $39.91 billion, a price-to-earnings ratio of 25.21 and a beta of 0.91. Paychex has a one year low of $107.80 and a one year high of $161.24. The company’s fifty day moving average price is $112.25 and its 200 day moving average price is $126.22. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27.

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 the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The company had revenue of $1.56 billion for the quarter, compared to analysts’ expectations of $1.55 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. Paychex’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts expect that Paychex will post 4.99 EPS for the current year.

Paychex announced that its Board of Directors has initiated a stock buyback plan on Friday, January 16th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend is Wednesday, January 28th. Paychex’s dividend payout ratio is currently 97.96%.

Institutional Investors Weigh In On Paychex

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in shares of 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 purchasing an additional 5,549,511 shares in the last quarter. Norges Bank bought a new position in Paychex in the 2nd quarter worth approximately $302,244,000. Voloridge Investment Management LLC bought a new position in Paychex in the 3rd quarter worth about $117,809,000. Marshall Wace LLP grew its stake in Paychex by 179.5% during the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock valued at $156,854,000 after acquiring an additional 692,533 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its position in shares of Paychex by 29.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider’s stock valued at $369,901,000 after purchasing an additional 574,337 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

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.