Jain Global LLC Acquires 58,881 Shares of Paychex, Inc. $PAYX

Jain Global LLC lifted its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 196.3% during the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 88,878 shares of the business services provider’s stock after purchasing an additional 58,881 shares during the period. Jain Global LLC’s holdings in Paychex were worth $11,266,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Heartwood Wealth Advisors LLC acquired a new position in Paychex during the 3rd quarter worth about $25,000. MMA Asset Management LLC acquired a new stake in Paychex in the 3rd quarter valued at about $32,000. Westfuller Advisors LLC bought a new position in shares of Paychex in the third quarter worth about $35,000. Caitlin John LLC acquired a new position in shares of Paychex during the third quarter worth approximately $36,000. Finally, Wealth Watch Advisors INC acquired a new position in shares of Paychex during the third quarter worth approximately $42,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on PAYX. BMO Capital Markets lowered their price target on shares of Paychex from $121.00 to $103.00 and set a “market perform” rating for the company in a report on Friday. Stephens reduced their price objective on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Argus decreased their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research report on Friday, January 2nd. Jefferies Financial Group set a $110.00 target price on Paychex in a research note on Friday, December 19th. Finally, TD Cowen restated a “hold” rating on shares of Paychex in a research report on Monday, December 1st. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Paychex currently has a consensus rating of “Reduce” and an average price target of $122.81.

Paychex Trading Up 0.5%

Shares of NASDAQ PAYX opened at $93.10 on Tuesday. Paychex, Inc. has a fifty-two week low of $86.89 and a fifty-two week high of $161.24. The firm has a market capitalization of $33.42 billion, a P/E ratio of 21.11 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The company’s 50 day simple moving average is $100.15 and its 200 day simple moving average is $113.43.

Paychex (NASDAQ:PAYX) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. The firm 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%. The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter 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, analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

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

Paychex declared that its Board of Directors has initiated a share buyback program on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication 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.