Bank of Montreal Can Reduces Position in Paychex, Inc. $PAYX

Bank of Montreal Can trimmed its stake in Paychex, Inc. (NASDAQ:PAYX) by 14.6% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 420,343 shares of the business services provider’s stock after selling 72,039 shares during the quarter. Bank of Montreal Can owned approximately 0.12% of Paychex worth $53,283,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Banque Cantonale Vaudoise raised its stake in Paychex by 10.8% in the 3rd quarter. Banque Cantonale Vaudoise now owns 15,778 shares of the business services provider’s stock valued at $2,000,000 after purchasing an additional 1,536 shares during the last quarter. Fieldview Capital Management LLC boosted its stake in shares of Paychex by 1,231.2% during the 3rd quarter. Fieldview Capital Management LLC now owns 53,194 shares of the business services provider’s stock worth $6,743,000 after purchasing an additional 49,198 shares during the last quarter. Navalign LLC boosted its stake in shares of Paychex by 7.0% during the 3rd quarter. Navalign LLC now owns 2,450 shares of the business services provider’s stock worth $311,000 after purchasing an additional 161 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Paychex by 10.1% during the third quarter. Russell Investments Group Ltd. now owns 312,141 shares of the business services provider’s stock worth $39,629,000 after buying an additional 28,674 shares in the last quarter. Finally, PFG Advisors grew its holdings in shares of Paychex by 6.1% during the third quarter. PFG Advisors now owns 41,712 shares of the business services provider’s stock worth $5,287,000 after buying an additional 2,414 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Price Performance

PAYX opened at $91.67 on Friday. Paychex, Inc. has a 1 year low of $86.89 and a 1 year high of $161.24. The company’s 50 day simple moving average is $100.80 and its 200 day simple moving average is $114.41. The stock has a market capitalization of $32.91 billion, a PE ratio of 20.79 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. The firm had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex announced that its Board of Directors has initiated a share buyback program on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is 97.96%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on PAYX. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. Morgan Stanley lowered their target price on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Wells Fargo & Company cut their price target on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a report on Tuesday, December 9th. BMO Capital Markets reduced their price target on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Finally, JPMorgan Chase & Co. decreased their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average 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.