Donaldson Capital Management LLC Sells 6,460 Shares of Paychex, Inc. $PAYX

Donaldson Capital Management LLC reduced its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 1.5% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 423,197 shares of the business services provider’s stock after selling 6,460 shares during the quarter. Paychex accounts for approximately 1.7% of Donaldson Capital Management LLC’s holdings, making the stock its 23rd biggest position. Donaldson Capital Management LLC owned about 0.12% of Paychex worth $53,644,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. CWS Financial Advisors LLC grew its position in Paychex by 11.3% during the third quarter. CWS Financial Advisors LLC now owns 4,627 shares of the business services provider’s stock valued at $587,000 after buying an additional 469 shares during the period. Frank Rimerman Advisors LLC boosted its stake in shares of Paychex by 8.1% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 15,369 shares of the business services provider’s stock worth $1,948,000 after acquiring an additional 1,157 shares during the last quarter. Keybank National Association OH grew its position in shares of Paychex by 2.4% during the 3rd quarter. Keybank National Association OH now owns 36,512 shares of the business services provider’s stock valued at $4,628,000 after acquiring an additional 860 shares during the period. National Pension Service increased its stake in shares of Paychex by 2.9% in the 3rd quarter. National Pension Service now owns 489,900 shares of the business services provider’s stock worth $62,100,000 after purchasing an additional 13,818 shares in the last quarter. Finally, Bryn Mawr Trust Advisors LLC raised its holdings in Paychex by 10.2% in the 3rd quarter. Bryn Mawr Trust Advisors LLC now owns 2,226 shares of the business services provider’s stock worth $282,000 after purchasing an additional 206 shares during the period. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Up 0.9%

PAYX stock opened at $103.13 on Friday. 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, Inc. has a 1-year low of $101.04 and a 1-year high of $161.24. The business has a 50 day simple moving average of $111.26 and a two-hundred day simple moving average of $123.62. The company has a market capitalization of $37.02 billion, a price-to-earnings ratio of 23.39 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. The company’s quarterly revenue was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Research analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.2%. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

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

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. TD Cowen reissued a “hold” rating on shares of Paychex in a report on Monday, December 1st. BMO Capital Markets lowered their price objective on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research report on Tuesday, December 9th. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Citigroup decreased 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. Finally, Wells Fargo & Company dropped their price target 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. 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’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average 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.