Capital World Investors Has $55.77 Million Stake in Paychex, Inc. $PAYX

Capital World Investors reduced its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 70.5% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 440,000 shares of the business services provider’s stock after selling 1,050,014 shares during the quarter. Capital World Investors’ holdings in Paychex were worth $55,774,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in PAYX. Brighton Jones LLC increased its holdings in shares of 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 last quarter. Bison Wealth LLC lifted its stake in shares of Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after buying an additional 117 shares during the last quarter. Woodline Partners LP bought a new stake in shares of Paychex during the 1st quarter worth about $3,333,000. Allworth Financial LP boosted its holdings in shares of Paychex by 15.1% during the 2nd quarter. Allworth Financial LP now owns 11,760 shares of the business services provider’s stock worth $1,711,000 after buying an additional 1,539 shares during the period. Finally, Advyzon Investment Management LLC acquired a new position in Paychex in the 2nd quarter valued at about $203,000. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Stock Down 2.5%

Shares of PAYX opened at $91.67 on Friday. The firm has a 50 day simple moving average of $100.80 and a two-hundred day simple moving average of $114.41. 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, Inc. has a one year low of $86.89 and a one year high of $161.24. The company has a market cap of $32.91 billion, a P/E ratio of 20.79 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last issued its quarterly 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 analyst estimates of $1.55 billion. During the same quarter last year, the company posted $1.14 EPS. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Research analysts forecast that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex declared that its board has approved a share repurchase program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were given a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date was Wednesday, January 28th. Paychex’s payout ratio is currently 97.96%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Argus lowered their target price on Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research note on Friday, January 2nd. Wolfe Research dropped their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. Royal Bank Of Canada reduced their price target on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research note on Friday, December 5th. Finally, JPMorgan Chase & Co. decreased their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average price target of $123.94.

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.