BI Asset Management Fondsmaeglerselskab A S Cuts Position in Paychex, Inc. $PAYX

BI Asset Management Fondsmaeglerselskab A S lessened its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 3.9% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 326,711 shares of the business services provider’s stock after selling 13,424 shares during the quarter. BI Asset Management Fondsmaeglerselskab A S owned about 0.09% of Paychex worth $39,728,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Paychex in the 2nd quarter valued at $302,244,000. Marshall Wace LLP increased its position in Paychex by 179.5% during the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock worth $156,854,000 after buying an additional 692,533 shares during the period. JPMorgan Chase & Co. boosted its stake in Paychex by 29.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider’s stock worth $369,901,000 after purchasing an additional 574,337 shares during the period. Assenagon Asset Management S.A. increased its position in Paychex by 209.1% in the 3rd quarter. Assenagon Asset Management S.A. now owns 838,679 shares of the business services provider’s stock valued at $106,311,000 after acquiring an additional 567,352 shares during the period. Finally, Select Equity Group L.P. grew its position in Paychex by 15.9% in the 2nd quarter. Select Equity Group L.P. now owns 4,051,413 shares of the business services provider’s stock valued at $589,319,000 after buying an additional 557,101 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on PAYX shares. BMO Capital Markets decreased their target price on shares of Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research report on Tuesday, December 9th. Morgan Stanley reduced their target price on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. JPMorgan Chase & Co. dropped their price target on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Stephens cut their price objective on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Finally, Wells Fargo & Company decreased their price target 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 equities research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $123.94.

Paychex Trading Up 1.4%

NASDAQ:PAYX opened at $98.48 on Thursday. The business’s 50-day moving average is $110.56 and its two-hundred day moving average is $122.71. The firm has a market capitalization of $35.35 billion, a PE ratio of 22.33 and a beta of 0.90. Paychex, Inc. has a 12 month low of $94.90 and a 12 month high of $161.24. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

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

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

Paychex Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be issued a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Wednesday, January 28th. Paychex’s payout ratio is 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.