Cibc World Market Inc. Acquires 6,815 Shares of Paychex, Inc. $PAYX

Cibc World Market Inc. lifted its stake in Paychex, Inc. (NASDAQ:PAYX) by 14.5% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 53,853 shares of the business services provider’s stock after purchasing an additional 6,815 shares during the quarter. Cibc World Market Inc.’s holdings in Paychex were worth $6,826,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Heartwood Wealth Advisors LLC purchased a new stake in shares of Paychex in the third quarter worth $25,000. NewSquare Capital LLC boosted its stake in Paychex by 83.8% in the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after purchasing an additional 98 shares in the last quarter. MMA Asset Management LLC purchased a new stake in Paychex during the 3rd quarter valued at about $32,000. Westfuller Advisors LLC bought a new stake in Paychex during the 3rd quarter valued at about $35,000. Finally, GPS Wealth Strategies Group LLC raised its holdings in Paychex by 40.6% in the second quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock worth $38,000 after buying an additional 76 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Up 2.1%

Paychex stock opened at $94.38 on Friday. Paychex, Inc. has a 52-week low of $91.70 and a 52-week high of $161.24. The company has a market cap of $33.88 billion, a P/E ratio of 21.40 and a beta of 0.90. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The business has a 50-day simple moving average of $108.43 and a two-hundred day simple moving average of $120.48.

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 firm had revenue of $1.56 billion for the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex announced that its Board of Directors has approved a share repurchase program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Wednesday, January 28th. Paychex’s dividend payout ratio is 97.96%.

Analysts Set New Price Targets

PAYX has been the subject of several analyst reports. Wolfe Research reduced their price target on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research report on Wednesday, December 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. TD Cowen reissued a “hold” rating on shares of Paychex in a report on Monday, December 1st. Citigroup lowered their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a report on Monday, December 22nd. Finally, Stifel Nicolaus reduced their price objective on Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $123.94.

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.