Caprock Group LLC Purchases Shares of 8,199 Paychex, Inc. $PAYX

Caprock Group LLC purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 8,199 shares of the business services provider’s stock, valued at approximately $1,143,000.

Several other institutional investors and hedge funds have also recently modified their holdings of PAYX. Vanguard Group Inc. grew its stake in shares of Paychex by 1.3% in the second 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 boosted its holdings in Paychex by 2.6% in the second quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock valued at $2,046,050,000 after purchasing an additional 355,294 shares during the period. Charles Schwab Investment Management Inc. grew its stake in Paychex by 2.3% during the 2nd 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 increased its holdings in Paychex by 2.8% during the 2nd quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock worth $1,481,053,000 after purchasing an additional 274,947 shares during the period. Finally, Invesco Ltd. raised its position in 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 in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Up 2.1%

NASDAQ PAYX opened at $94.38 on Friday. 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 1-year low of $91.70 and a 1-year high of $161.24. The firm’s fifty day simple moving average is $108.43 and its 200-day simple moving average is $120.29. The company has a market capitalization of $33.88 billion, a PE ratio of 21.40 and a beta of 0.90.

Paychex (NASDAQ:PAYX) last issued its earnings results 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 analyst estimates of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

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

Paychex Announces Dividend

The firm 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 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 dividend yield of 4.6%. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

Analysts Set New Price Targets

Several research firms have commented on PAYX. Royal Bank Of Canada lowered their price target on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a report on Friday, December 5th. JPMorgan Chase & Co. decreased their price objective on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Cantor Fitzgerald raised Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Morgan Stanley cut their price objective on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Finally, Jefferies Financial Group set a $110.00 target price on shares of Paychex in a report on Friday, December 19th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and an average price target 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.