Principal Financial Group Inc. Decreases Holdings in Paychex, Inc. $PAYX

Principal Financial Group Inc. reduced its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 3.9% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 390,789 shares of the business services provider’s stock after selling 16,008 shares during the quarter. Principal Financial Group Inc. owned approximately 0.11% of Paychex worth $49,536,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Vanguard Group Inc. raised its stake in Paychex by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 32,215,957 shares of the business services provider’s stock worth $4,686,133,000 after acquiring an additional 408,114 shares in the last quarter. State Street Corp grew its holdings in shares of Paychex by 2.6% during the second quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock worth $2,046,050,000 after purchasing an additional 355,294 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Paychex by 2.3% during the second quarter. Charles Schwab Investment Management Inc. now owns 11,033,312 shares of the business services provider’s stock worth $1,604,906,000 after purchasing an additional 251,139 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Paychex by 2.8% in the 2nd quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock valued at $1,481,053,000 after purchasing an additional 274,947 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Paychex by 6.0% in the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after purchasing an additional 249,550 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Performance

Shares of PAYX stock opened at $98.48 on Thursday. 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 50 day simple moving average of $110.56 and a 200-day simple moving average of $122.71. The company has a market cap of $35.35 billion, a price-to-earnings 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.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data 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 for the quarter, compared to analyst estimates of $1.55 billion. During the same quarter in the prior year, the company posted $1.14 earnings per share. Paychex’s quarterly revenue was up 18.3% on a year-over-year basis. 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 EPS for the current year.

Paychex announced that its board has approved a stock repurchase plan on Friday, January 16th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be given a $1.08 dividend. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.4%. Paychex’s payout ratio is currently 97.96%.

Wall Street Analyst Weigh In

Several research analysts have commented on PAYX shares. Jefferies Financial Group set a $110.00 price target on Paychex in a research report on Friday, December 19th. Wolfe Research cut their target price on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. Wells Fargo & Company decreased their price target on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research note on Tuesday, December 9th. Royal Bank Of Canada lowered their price objective on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. Finally, Morgan Stanley reduced their target price on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $123.94.

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.