Resona Asset Management Co. Ltd. Has $14.43 Million Holdings in Paychex, Inc. $PAYX

Resona Asset Management Co. Ltd. lessened its stake in Paychex, Inc. (NASDAQ:PAYX) by 5.2% in the third quarter, HoldingsChannel reports. The firm owned 113,602 shares of the business services provider’s stock after selling 6,271 shares during the period. Resona Asset Management Co. Ltd.’s holdings in Paychex were worth $14,431,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Heartwood Wealth Advisors LLC acquired a new position in shares of Paychex during the 3rd quarter worth about $25,000. NewSquare Capital LLC boosted its stake in Paychex by 83.8% during the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after acquiring an additional 98 shares during the last quarter. GPS Wealth Strategies Group LLC grew its holdings in Paychex by 40.6% during the second quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after purchasing an additional 76 shares during the period. Westfuller Advisors LLC bought a new stake in Paychex in the third quarter valued at approximately $35,000. Finally, Whipplewood Advisors LLC increased its stake in Paychex by 94.0% in the second quarter. Whipplewood Advisors LLC now owns 293 shares of the business services provider’s stock valued at $43,000 after purchasing an additional 142 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. JPMorgan Chase & Co. decreased 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. Jefferies Financial Group set a $110.00 target price on Paychex in a report on Friday, December 19th. UBS Group decreased their target price on Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a research note on Thursday, October 2nd. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Finally, Morgan Stanley cut their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Paychex has a consensus rating of “Reduce” and an average target price of $125.67.

Paychex Stock Performance

PAYX opened at $106.63 on Monday. The business’s 50-day moving average price is $111.88 and its two-hundred day moving average price is $124.88. Paychex, Inc. has a 1 year low of $106.47 and a 1 year high of $161.24. The company has a market capitalization of $38.28 billion, a price-to-earnings ratio of 24.18 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.Paychex’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.14 earnings per share. 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 fiscal year.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

Paychex declared that its Board of Directors has approved a stock buyback program on Friday, January 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

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.