Achmea Investment Management B.V. Decreases Position in Paychex, Inc. $PAYX

Achmea Investment Management B.V. trimmed its stake in Paychex, Inc. (NASDAQ:PAYX) by 62.0% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 59,719 shares of the business services provider’s stock after selling 97,339 shares during the period. Achmea Investment Management B.V.’s holdings in Paychex were worth $7,571,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Heartwood Wealth Advisors LLC bought a new stake in Paychex in the third quarter worth $25,000. Stance Capital LLC bought a new position in Paychex during the third quarter valued at $31,000. MMA Asset Management LLC purchased a new stake in shares of Paychex in the third quarter valued at $32,000. Westfuller Advisors LLC purchased a new stake in shares of Paychex in the third quarter valued at $35,000. Finally, Caitlin John LLC bought a new stake in shares of Paychex in the 3rd quarter worth about $36,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Down 1.9%

Shares of PAYX opened at $90.64 on Thursday. The firm has a market capitalization of $32.54 billion, a price-to-earnings ratio of 20.55 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. Paychex, Inc. has a 1-year low of $86.89 and a 1-year high of $161.24. The company has a 50-day moving average of $99.36 and a 200 day moving average of $112.94.

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

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

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were issued a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 4.8%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on PAYX. Royal Bank Of Canada dropped their price target on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research note on Friday, December 5th. Morgan Stanley decreased their price objective 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. JPMorgan Chase & Co. dropped their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday, December 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Finally, Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. One investment analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $122.81.

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.