Troy Asset Management Ltd Cuts Stock Position in Paychex, Inc. $PAYX

Troy Asset Management Ltd lowered its holdings in Paychex, Inc. (NASDAQ:PAYX) by 3.6% in the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 596,435 shares of the business services provider’s stock after selling 22,016 shares during the period. Paychex makes up 1.9% of Troy Asset Management Ltd’s holdings, making the stock its 12th biggest holding. Troy Asset Management Ltd’s holdings in Paychex were worth $75,604,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in PAYX. Brighton Jones LLC boosted its holdings in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock valued at $801,000 after purchasing an additional 1,190 shares during the period. Bison Wealth LLC boosted its stake in shares of Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after buying an additional 117 shares during the period. Woodline Partners LP acquired a new position in shares of Paychex during the first quarter worth about $3,333,000. CWM LLC grew its position in shares of Paychex by 7.2% during the second quarter. CWM LLC now owns 19,788 shares of the business services provider’s stock worth $2,878,000 after buying an additional 1,322 shares in the last quarter. Finally, Mutual Advisors LLC increased its stake in shares of Paychex by 38.2% during the second quarter. Mutual Advisors LLC now owns 3,374 shares of the business services provider’s stock worth $499,000 after buying an additional 932 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Price Performance

PAYX opened at $94.38 on Friday. The stock has a market capitalization of $33.88 billion, a PE ratio of 21.40 and a beta of 0.90. 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’s 50 day simple moving average is $108.43 and its 200 day simple moving average is $120.29. Paychex, Inc. has a 1 year low of $91.70 and a 1 year high of $161.24.

Paychex (NASDAQ:PAYX) last posted its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping 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 in the prior year, the company earned $1.14 EPS. The company’s 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, sell-side analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex declared that its Board of Directors has initiated a stock repurchase plan on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board 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 $1.08 dividend. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.6%. Paychex’s payout ratio is presently 97.96%.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Wolfe Research lowered their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. TD Cowen reissued a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Stephens dropped their price objective on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Finally, Citigroup decreased their price objective on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a 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 stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $123.94.

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.