Dynamic Technology Lab Private Ltd Takes $1.57 Million Position in Paychex, Inc. $PAYX

Dynamic Technology Lab Private Ltd bought a new stake in shares of Paychex, Inc. (NASDAQ:PAYX) during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund bought 12,409 shares of the business services provider’s stock, valued at approximately $1,573,000.

Several other institutional investors and hedge funds have also bought and sold shares of PAYX. Vanguard Group Inc. increased its stake in Paychex by 17.2% in the third quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock valued at $4,787,151,000 after purchasing an additional 5,549,511 shares in the last quarter. Norges Bank acquired a new stake in shares of Paychex in the 2nd quarter valued at about $302,244,000. Marshall Wace LLP grew its stake in shares of Paychex by 179.5% in the 2nd quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock valued at $156,854,000 after buying an additional 692,533 shares during the period. JPMorgan Chase & Co. increased its position in Paychex by 29.2% in 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 buying an additional 574,337 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its stake in Paychex by 209.1% during the 3rd quarter. Assenagon Asset Management S.A. now owns 838,679 shares of the business services provider’s stock worth $106,311,000 after buying an additional 567,352 shares during the period. 83.47% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several brokerages have issued reports on PAYX. Morgan Stanley cut their price target on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. JPMorgan Chase & Co. lowered their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research report on Monday, December 22nd. Royal Bank Of Canada cut their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a report on Friday, December 5th. Stifel Nicolaus reduced their price target on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a research report on Wednesday, December 17th. Finally, Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. One investment analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Paychex presently has a consensus rating of “Reduce” and an average target price of $123.94.

Paychex Stock Performance

Shares of PAYX opened at $100.85 on Friday. 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 stock has a 50 day moving average price of $102.25 and a two-hundred day moving average price of $115.48. The firm has a market capitalization of $36.20 billion, a P/E ratio of 22.87 and a beta of 0.91. Paychex, Inc. has a 52 week low of $86.89 and a 52 week 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 for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The company’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter last year, the company earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.3%. Paychex’s dividend payout ratio (DPR) is 97.96%.

Paychex announced that its Board of Directors has approved a stock buyback plan on Friday, January 16th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to buy 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.

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.