Assenagon Asset Management S.A. Raises Stock Position in Paychex, Inc. $PAYX

Assenagon Asset Management S.A. boosted its stake in Paychex, Inc. (NASDAQ:PAYX) by 126.8% in the first quarter, HoldingsChannel reports. The firm owned 455,607 shares of the business services provider’s stock after acquiring an additional 254,727 shares during the period. Assenagon Asset Management S.A.’s holdings in Paychex were worth $41,971,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in PAYX. Vanguard Group Inc. increased its position in Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after buying an additional 4,583,157 shares in the last quarter. First Long Island Investors LLC lifted its position in shares of Paychex by 23.9% during the 3rd quarter. First Long Island Investors LLC now owns 99,607 shares of the business services provider’s stock valued at $12,626,000 after buying an additional 19,185 shares in the last quarter. Elo Mutual Pension Insurance Co grew its stake in shares of Paychex by 35.9% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 63,659 shares of the business services provider’s stock valued at $8,069,000 after acquiring an additional 16,812 shares during the period. LBP AM SA raised its stake in Paychex by 125.2% during the 4th quarter. LBP AM SA now owns 40,517 shares of the business services provider’s stock worth $4,545,000 after acquiring an additional 22,527 shares during the period. Finally, Tectonic Advisors LLC raised its stake in Paychex by 17.4% during the 4th quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider’s stock worth $8,942,000 after acquiring an additional 11,805 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Up 0.4%

PAYX opened at $96.72 on Friday. The company has a market capitalization of $34.65 billion, a PE ratio of 19.78 and a beta of 0.84. The firm has a 50-day simple moving average of $95.42 and a two-hundred day simple moving average of $99.14. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.76.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the previous year, the business earned $1.19 earnings per share. The firm’s revenue for the quarter was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were given a $1.19 dividend. This is a boost from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 annualized dividend and a yield of 4.9%. The ex-dividend date was Wednesday, May 13th. Paychex’s dividend payout ratio (DPR) is presently 104.85%.

Key Stories Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex beat fiscal Q4 estimates, reporting EPS of $1.32 versus $1.31 expected and revenue of $1.61 billion versus $1.60 billion expected, with revenue up 12.5% year over year. Paychex earnings report
• Positive Sentiment: Management highlighted growth drivers including Paycor synergies, stronger Management Solutions performance, and AI-related monetization efforts through WISE, which supports the longer-term growth story. Zacks earnings call takeaways
• Positive Sentiment: Several analysts framed the stock as more attractive after the pullback, noting Paychex has strong fundamentals and that fiscal 2027 looks “cleaner” after a noisy 2026. Benzinga analyst note
• Neutral Sentiment: JPMorgan raised its price target to $105 from $100 but kept an Underweight rating, signaling limited upside despite acknowledging the shares can rise from current levels. JPMorgan price target update
• Neutral Sentiment: Short-interest data showed essentially no shares sold short, so short selling does not appear to be a meaningful factor in the stock’s move.
• Negative Sentiment: Investors are reacting to fiscal 2027 guidance that points to slower growth than fiscal 2026, with revenue expected to grow 5% to 6% and EPS 7% to 9%, a deceleration after the recent double-digit expansion. Proactive Investors earnings outlook article
• Negative Sentiment: Some commentary also pointed to higher-than-expected expenses and a cautious outlook as reasons the stock slipped after earnings, even though the underlying results were strong. Seeking Alpha news

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on PAYX shares. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. JPMorgan Chase & Co. raised their price target on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a report on Thursday. Jefferies Financial Group dropped their price objective on Paychex from $110.00 to $105.00 and set a “hold” rating for the company in a research note on Thursday, March 26th. TD Cowen increased their target price on Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a research report on Monday, June 8th. Finally, Argus raised Paychex to a “strong-buy” rating in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $105.67.

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.