Jefferies Financial Group Inc. Decreases Stock Holdings in Paychex, Inc. $PAYX

Jefferies Financial Group Inc. cut its stake in Paychex, Inc. (NASDAQ:PAYX) by 34.8% in the third quarter, HoldingsChannel reports. The institutional investor owned 19,135 shares of the business services provider’s stock after selling 10,193 shares during the quarter. Jefferies Financial Group Inc.’s holdings in Paychex were worth $2,426,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of PAYX. Heartwood Wealth Advisors LLC purchased a new stake in shares of Paychex during the 3rd quarter worth approximately $25,000. MMA Asset Management LLC purchased a new position in Paychex in the 3rd quarter valued at approximately $32,000. Westfuller Advisors LLC purchased a new position in Paychex in the 3rd quarter valued at approximately $35,000. Caitlin John LLC acquired a new position in Paychex during the third quarter worth $36,000. Finally, E Fund Management Hong Kong Co. Ltd. boosted its position in Paychex by 193.2% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 346 shares of the business services provider’s stock worth $44,000 after purchasing an additional 228 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Performance

Shares of PAYX opened at $95.12 on Wednesday. Paychex, Inc. has a 1 year low of $86.89 and a 1 year high of $161.24. The company’s 50 day simple moving average is $101.57 and its 200 day simple moving average is $114.71. The company has a market capitalization of $34.15 billion, a price-to-earnings ratio of 21.57 and a beta of 0.91. 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 released its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. The firm had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the previous year, the company earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, sell-side analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

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

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were given a $1.08 dividend. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.5%. Paychex’s payout ratio is currently 97.96%.

Wall Street Analyst Weigh In

PAYX has been the topic of several research reports. Stifel Nicolaus lowered their target price on Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a report on Wednesday, December 17th. TD Cowen reiterated a “hold” rating on shares of Paychex in a research report on Monday, December 1st. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Morgan Stanley dropped their target price on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Finally, Jefferies Financial Group set a $110.00 target price on shares of Paychex in a research report on Friday, December 19th. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target 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.