Truist Financial Corp Trims Stake in Paychex, Inc. $PAYX

Truist Financial Corp cut its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 14.2% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 156,168 shares of the business services provider’s stock after selling 25,745 shares during the period. Truist Financial Corp’s holdings in Paychex were worth $19,796,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the stock. EPG Wealth Management LLC grew its position in Paychex by 6.5% in 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 buying an additional 660 shares during the last quarter. Paragon Private Wealth Management LLC lifted its stake in shares of Paychex by 19.3% in 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 3rd quarter. Bank of Jackson Hole Trust now owns 6,437 shares of the business services provider’s stock worth $816,000 after acquiring an additional 674 shares in the last quarter. LBP AM SA boosted its position in Paychex by 1.2% during 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 in the last quarter. Finally, Cullen Frost Bankers Inc. boosted its position in shares of 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 in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Morgan Stanley cut their price target on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. BMO Capital Markets lowered their target price on shares of Paychex from $140.00 to $121.00 and set a “market perform” rating for the company in a report on Tuesday, December 9th. TD Cowen reissued a “hold” rating on shares of Paychex in a research report on Monday, December 1st. Citigroup reduced their price target on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research report on Monday, December 22nd. Finally, Wells Fargo & Company reduced their price objective on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a research note on Tuesday, December 9th. One research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $123.94.

Paychex Price Performance

NASDAQ PAYX opened at $103.13 on Friday. Paychex, Inc. has a 52 week low of $101.04 and a 52 week high of $161.24. 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 cap of $37.02 billion, a price-to-earnings ratio of 23.39 and a beta of 0.91. The company has a 50-day moving average price of $111.26 and a two-hundred day moving average price of $123.74.

Paychex (NASDAQ:PAYX) last released its earnings results 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 the consensus estimate of $1.55 billion. During the same period in the prior year, the firm posted $1.14 earnings per share. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex declared that its board has initiated a share repurchase plan 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 stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Paychex Dividend Announcement

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

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.