Aberdeen Group plc Decreases Stock Holdings in Paychex, Inc. $PAYX

Aberdeen Group plc lessened its stake in Paychex, Inc. (NASDAQ:PAYX) by 3.2% in the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 246,915 shares of the business services provider’s stock after selling 8,161 shares during the quarter. Aberdeen Group plc owned approximately 0.07% of Paychex worth $30,673,000 at the end of the most recent reporting period.

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

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Stephens cut their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Royal Bank Of Canada decreased their price objective on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research note on Friday, December 5th. Citigroup dropped their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a report on Monday, December 22nd. Finally, Argus decreased their price objective on shares of Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, January 2nd. One research 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 a consensus rating of “Reduce” and a consensus price target of $123.94.

Paychex Stock Up 2.1%

Paychex stock opened at $94.38 on Tuesday. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The firm has a market capitalization of $33.88 billion, a price-to-earnings ratio of 21.40 and a beta of 0.90. The stock’s fifty day moving average is $108.07 and its two-hundred day moving average is $119.76. Paychex, Inc. has a fifty-two week low of $91.70 and a fifty-two week high of $161.24.

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 return on equity of 46.38% and a net margin of 26.45%.The business had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same period in the prior year, the business earned $1.14 earnings per share. The business’s revenue was up 18.3% on a year-over-year basis. 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 fiscal year.

Paychex announced that its board has authorized a stock repurchase program on Friday, January 16th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the business services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. The ex-dividend date of this dividend 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 presently 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.