Federated Hermes Inc. Increases Position in Paychex, Inc. $PAYX

Federated Hermes Inc. grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 98.6% during the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 56,806 shares of the business services provider’s stock after buying an additional 28,198 shares during the quarter. Federated Hermes Inc.’s holdings in Paychex were worth $7,201,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of PAYX. EPG Wealth Management LLC boosted its holdings in Paychex by 6.5% during the 3rd quarter. EPG Wealth Management LLC now owns 10,747 shares of the business services provider’s stock valued at $1,362,000 after acquiring an additional 660 shares during the period. Paragon Private Wealth Management LLC boosted its stake in shares of Paychex by 19.3% during the third quarter. Paragon Private Wealth Management LLC now owns 10,202 shares of the business services provider’s stock valued at $1,293,000 after purchasing an additional 1,650 shares during the period. Bank of Jackson Hole Trust boosted its stake in shares of Paychex by 11.7% during the third quarter. Bank of Jackson Hole Trust now owns 6,437 shares of the business services provider’s stock valued at $816,000 after purchasing an additional 674 shares during the period. LBP AM SA grew its holdings in shares of Paychex by 1.2% in the third quarter. LBP AM SA now owns 17,990 shares of the business services provider’s stock worth $2,280,000 after purchasing an additional 221 shares during the last quarter. Finally, Cullen Frost Bankers Inc. increased its stake in Paychex by 18.6% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 2,994 shares of the business services provider’s stock worth $380,000 after buying an additional 469 shares during the period. 83.47% of the stock is owned by institutional investors.

Paychex Stock Down 0.6%

Shares of NASDAQ PAYX opened at $102.47 on Tuesday. Paychex, Inc. has a 12-month low of $101.04 and a 12-month high of $161.24. The stock’s fifty day simple moving average is $111.12 and its two-hundred day simple moving average is $123.20. The stock has a market capitalization of $36.78 billion, a PE ratio of 23.24 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.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The firm had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. During the same period in the prior year, the business posted $1.14 EPS. The firm’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts expect that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex declared that its board has initiated a stock buyback 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 repurchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

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 $1.08 dividend. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.2%. Paychex’s payout ratio is presently 97.96%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on PAYX shares. Jefferies Financial Group set a $110.00 price objective on shares of Paychex in a research report on Friday, December 19th. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Stephens dropped their price objective on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. JPMorgan Chase & Co. decreased their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Finally, Citigroup lowered their target price on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $123.94.

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.