First National Bank of Omaha Purchases New Shares in Paychex, Inc. $PAYX

First National Bank of Omaha acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX) during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm acquired 21,415 shares of the business services provider’s stock, valued at approximately $2,715,000.

Several other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in shares of Paychex by 17.2% during 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. State Street Corp lifted its position in shares of Paychex by 2.6% during the 2nd quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock worth $2,046,050,000 after buying an additional 355,294 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Paychex by 2.3% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 11,033,312 shares of the business services provider’s stock worth $1,604,906,000 after buying an additional 251,139 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Paychex by 2.8% in the second quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock valued at $1,481,053,000 after acquiring an additional 274,947 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Paychex by 6.0% in the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after acquiring an additional 249,550 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Paychex Stock Performance

Shares of PAYX stock opened at $94.29 on Thursday. The stock has a market capitalization of $33.85 billion, a P/E ratio of 21.38 and a beta of 0.90. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. The firm’s 50 day moving average is $107.31 and its 200 day moving average is $119.26. Paychex, Inc. has a 12 month low of $91.70 and a 12 month high of $161.24.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data 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 business had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue was up 18.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, sell-side analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

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

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be paid a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Wednesday, January 28th. Paychex’s payout ratio is presently 97.96%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on PAYX. BMO Capital Markets dropped their price target on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a report on Tuesday, December 9th. Royal Bank Of Canada lowered their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research note on Friday, December 5th. Wolfe Research reduced their price target on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research report on Wednesday, December 10th. Stifel Nicolaus decreased their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. Finally, Citigroup dropped their target price on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Paychex currently has an average rating of “Reduce” and a consensus target price 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.