OP Asset Management Ltd Invests $3.28 Million in Paychex, Inc. $PAYX

OP Asset Management Ltd bought a new stake in Paychex, Inc. (NASDAQ:PAYX) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 35,567 shares of the business services provider’s stock, valued at approximately $3,276,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in PAYX. Capital International Investors grew its position in Paychex by 59.1% in the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Paychex by 12.1% in the 4th 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 during the last quarter. Federated Hermes Inc. grew its holdings in shares of Paychex by 4,141.2% in the fourth quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock valued at $270,267,000 after acquiring an additional 2,352,423 shares in the last quarter. Norges Bank bought a new position in shares of Paychex in the fourth quarter valued at approximately $257,699,000. Finally, Voloridge Investment Management LLC purchased a new stake in shares of Paychex during the third quarter valued at approximately $117,809,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. BMO Capital Markets boosted their price objective on Paychex to $52.00 and gave the stock an “outperform” rating in a research report on Thursday, March 26th. JPMorgan Chase & Co. lifted their target price on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a research note on Thursday. Stifel Nicolaus boosted their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a report on Wednesday, June 17th. Robert W. Baird reduced their price target on shares of Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a research report on Thursday, March 26th. Finally, TD Cowen raised their price objective on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Paychex presently has a consensus rating of “Hold” and a consensus target price of $105.67.

Paychex Stock Performance

Shares of PAYX opened at $99.90 on Friday. The firm has a market cap of $35.79 billion, a PE ratio of 20.43 and a beta of 0.84. The stock’s fifty day moving average price is $95.62 and its two-hundred day moving average price is $99.14. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $148.76.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the company earned $1.19 EPS. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were paid a $1.19 dividend. The ex-dividend date was Wednesday, May 13th. This is a positive change from Paychex’s previous quarterly dividend of $1.08. This represents a $4.76 annualized dividend and a dividend yield of 4.8%. Paychex’s dividend payout ratio is 97.34%.

About Paychex

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.