Flputnam Investment Management Co. Cuts Position in Paychex, Inc. $PAYX

Flputnam Investment Management Co. trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 56.5% in the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 57,340 shares of the business services provider’s stock after selling 74,547 shares during the period. Flputnam Investment Management Co.’s holdings in Paychex were worth $7,268,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in PAYX. Heartwood Wealth Advisors LLC purchased a new position in Paychex during the third quarter valued at $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 acquiring an additional 98 shares during the last quarter. Quarry LP bought a new position in shares of Paychex during the first quarter valued at $34,000. Nova Wealth Management Inc. purchased a new position in shares of Paychex in the 1st quarter worth about $38,000. Finally, GPS Wealth Strategies Group LLC raised its position in shares of Paychex by 40.6% in the 2nd quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock worth $38,000 after purchasing an additional 76 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. JPMorgan Chase & Co. reduced their price objective on shares of Paychex from $153.00 to $140.00 and set an “underweight” rating for the company in a research note on Wednesday, October 1st. Wells Fargo & Company cut their price target on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Cowen reissued a “hold” rating on shares of Paychex in a research report on Monday, December 1st. TD Cowen decreased their price objective on shares of Paychex from $126.00 to $114.00 and set a “hold” rating for the company in a report on Monday, December 1st. Finally, Royal Bank Of Canada lowered their price objective on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. Fourteen analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $130.60.

Paychex Stock Performance

PAYX stock opened at $112.28 on Monday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27. Paychex, Inc. has a 1 year low of $108.00 and a 1 year high of $161.24. The company has a market cap of $40.41 billion, a P/E ratio of 25.46 and a beta of 0.91. The stock’s fifty day moving average price is $116.08 and its 200-day moving average price is $131.61.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating analysts’ consensus estimates 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 return on equity of 45.17% and a net margin of 27.85%.Paychex’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, equities analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th were paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 3.8%. The ex-dividend date was Friday, November 7th. Paychex’s dividend payout ratio is 97.96%.

Paychex News Summary

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q2 results beat expectations — EPS of $1.26 topped estimates and revenue rose 18.3% year-over-year, driven by management solutions and the recent Paycor contribution. Paychex Q2 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Paycor acquisition helping scale revenue and lift the company’s profit outlook, supporting the stronger top-line and the raised FY26 EPS range. Paychex Scales Fast After Paycor Acquisition
• Positive Sentiment: Company raised FY2026 EPS guidance to $5.48–$5.53, slightly above consensus, signaling management confidence in earnings power despite near-term costs. Paychex Reports Second Quarter Results
• Neutral Sentiment: Analysts were active ahead of the release, with some revisions to estimates — reflecting varied views on growth durability and integration risk. Analysts Revise Forecasts Ahead Of Earnings
• Neutral Sentiment: Some brokerages remain cautious (example: Stifel maintained a hold), keeping a range of opinions on valuation and growth vs. execution risk. Stifel Maintains Hold
• Negative Sentiment: Higher quarterly expenses (integration, amortization, or operating costs) were highlighted as offsetting some of the upside and tempered investor reaction to the guidance raise. Reuters: Higher Quarterly Expenses Overshadow Forecast Raise

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.