Federated Hermes Inc. Raises Stake in Paychex, Inc. $PAYX

Federated Hermes Inc. increased its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 98.6% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 56,806 shares of the business services provider’s stock after purchasing an additional 28,198 shares during the period. Federated Hermes Inc.’s holdings in Paychex were worth $7,201,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. EPG Wealth Management LLC raised its holdings in Paychex by 6.5% during the third quarter. EPG Wealth Management LLC now owns 10,747 shares of the business services provider’s stock valued at $1,362,000 after acquiring an additional 660 shares during the period. Paragon Private Wealth Management LLC grew its position in shares of Paychex by 19.3% during the third quarter. Paragon Private Wealth Management LLC now owns 10,202 shares of the business services provider’s stock worth $1,293,000 after purchasing an additional 1,650 shares in the last quarter. Bank of Jackson Hole Trust raised its stake in 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 valued at $816,000 after purchasing an additional 674 shares during the period. LBP AM SA lifted its holdings in Paychex by 1.2% in the 3rd 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 stake in 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 purchasing an additional 469 shares during the period. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Wall Street Analyst Weigh In

PAYX has been the topic of several recent analyst reports. Stephens reduced their price objective on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. Jefferies Financial Group set a $110.00 price target on shares of Paychex in a report on Friday, December 19th. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Citigroup reduced their target price on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a report on Monday, December 22nd. Finally, JPMorgan Chase & Co. decreased their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research report on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $123.94.

Paychex Stock Down 0.6%

Shares of NASDAQ:PAYX opened at $102.47 on Tuesday. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex, Inc. has a 12 month low of $101.04 and a 12 month high of $161.24. The company has a 50-day moving average price of $111.12 and a 200 day moving average price of $123.20. The company has a market cap of $36.78 billion, a price-to-earnings ratio of 23.24 and a beta of 0.90.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The company had revenue of $1.56 billion for the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

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. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a yield of 4.2%. Paychex’s payout ratio is 97.96%.

Paychex declared that its Board of Directors has approved a stock repurchase plan on Friday, January 16th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

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.