Paychex, Inc. $PAYX Shares Sold by Aberdeen Group plc

Aberdeen Group plc cut its position in Paychex, Inc. (NASDAQ:PAYX) by 3.2% during the 3rd quarter, HoldingsChannel reports. The firm owned 246,915 shares of the business services provider’s stock after selling 8,161 shares during the quarter. Aberdeen Group plc’s holdings in Paychex were worth $30,673,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently made changes to their positions in the business. Heartwood Wealth Advisors LLC acquired a new stake in Paychex in the 3rd quarter valued at approximately $25,000. NewSquare Capital LLC grew its stake in shares of Paychex by 83.8% in the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after purchasing an additional 98 shares in the last quarter. MMA Asset Management LLC bought a new position in shares of Paychex in the third quarter worth $32,000. Westfuller Advisors LLC acquired a new position in shares of Paychex during the third quarter valued at $35,000. Finally, GPS Wealth Strategies Group LLC raised its stake in shares of Paychex by 40.6% during the second quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after purchasing an additional 76 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Paychex Trading Up 2.1%

Shares of PAYX opened at $94.38 on Tuesday. The business’s 50-day moving average price is $108.07 and its 200 day moving average price is $119.76. 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 stock has a market capitalization of $33.88 billion, a P/E ratio of 21.40 and a beta of 0.90. Paychex, Inc. has a 1-year low of $91.70 and a 1-year high of $161.24.

Paychex (NASDAQ:PAYX) last announced 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. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period last year, the company posted $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex announced that its Board of Directors has approved a stock buyback program on Friday, January 16th that allows the company to repurchase $1.00 billion in 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 typically an indication that the company’s leadership believes its stock is undervalued.

Paychex Announces Dividend

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on PAYX. JPMorgan Chase & Co. decreased their target price on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Jefferies Financial Group set a $110.00 price objective on shares of Paychex in a report on Friday, December 19th. Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. Wells Fargo & Company cut their target price on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. Finally, Citigroup decreased their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently 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.