UniSuper Management Pty Ltd Grows Stake in Paychex, Inc. $PAYX

UniSuper Management Pty Ltd grew its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 4.2% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 136,826 shares of the business services provider’s stock after purchasing an additional 5,516 shares during the quarter. UniSuper Management Pty Ltd’s holdings in Paychex were worth $17,344,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the stock. Brighton Jones LLC boosted its holdings in Paychex by 26.3% in the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares during the period. Bison Wealth LLC raised its stake in shares of Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after purchasing an additional 117 shares during the period. Woodline Partners LP acquired a new position in shares of Paychex during the first quarter worth $3,333,000. American National Bank & Trust boosted its stake in shares of Paychex by 122.4% in the second quarter. American National Bank & Trust now owns 1,263 shares of the business services provider’s stock valued at $184,000 after purchasing an additional 695 shares during the period. Finally, Kathmere Capital Management LLC grew its holdings in Paychex by 19.9% during the 2nd quarter. Kathmere Capital Management LLC now owns 6,846 shares of the business services provider’s stock valued at $996,000 after purchasing an additional 1,137 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Price Performance

Shares of PAYX opened at $106.63 on Friday. The firm has a market cap of $38.28 billion, a price-to-earnings ratio of 24.18 and a beta of 0.91. The stock has a 50 day moving average of $111.88 and a 200-day moving average of $125.02. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex, Inc. has a 52 week low of $106.47 and a 52 week high of $161.24.

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, beating the consensus estimate of $1.23 by $0.03. The business 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 business’s revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex declared that its Board of Directors has initiated a share buyback program on Friday, January 16th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be issued 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 4.1%. Paychex’s payout ratio is 97.96%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on PAYX shares. BMO Capital Markets cut their price objective on shares of Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a report on Tuesday, December 9th. JPMorgan Chase & Co. dropped 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. Wells Fargo & Company reduced their price target on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a report on Tuesday, December 9th. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Finally, UBS Group dropped their price objective on Paychex from $140.00 to $132.00 and set a “neutral” rating on the stock in a report on Thursday, October 2nd. One investment analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Paychex presently has an average rating of “Reduce” and a consensus target price of $125.67.

Paychex 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.