Paychex, Inc. $PAYX Shares Acquired by Russell Investments Group Ltd.

Russell Investments Group Ltd. raised its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 10.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 312,141 shares of the business services provider’s stock after purchasing an additional 28,674 shares during the quarter. Russell Investments Group Ltd. owned 0.09% of Paychex worth $39,629,000 at the end of the most recent quarter.

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

Analyst Upgrades and Downgrades

PAYX has been the subject of several research analyst reports. Wells Fargo & Company dropped their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. Royal Bank Of Canada reduced their price target on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. BMO Capital Markets lowered their price objective on Paychex from $140.00 to $121.00 and set a “market perform” rating for the company in a report on Tuesday, December 9th. Finally, Argus cut their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research note on Friday, January 2nd. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $123.94.

Paychex Stock Down 1.2%

PAYX stock opened at $94.00 on Thursday. The firm has a market cap of $33.74 billion, a price-to-earnings ratio of 21.32 and a beta of 0.91. Paychex, Inc. has a 1-year low of $86.89 and a 1-year high of $161.24. The firm has a fifty day moving average price of $101.21 and a two-hundred day moving average price of $114.57. 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 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 company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same period last year, the firm posted $1.14 EPS. The company’s revenue for the quarter was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Research analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were issued 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 yield of 4.6%. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

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