Donaldson Capital Management LLC Decreases Stock Holdings in Paychex, Inc. $PAYX

Donaldson Capital Management LLC reduced its position in Paychex, Inc. (NASDAQ:PAYX) by 3.8% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 407,131 shares of the business services provider’s stock after selling 16,066 shares during the period. Paychex accounts for about 1.5% of Donaldson Capital Management LLC’s portfolio, making the stock its 26th largest position. Donaldson Capital Management LLC owned approximately 0.11% of Paychex worth $45,672,000 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 PAYX. Quantum Portfolio Management LLC lifted its position in Paychex by 3.1% during the second quarter. Quantum Portfolio Management LLC now owns 2,464 shares of the business services provider’s stock valued at $358,000 after acquiring an additional 75 shares during the last quarter. FAS Wealth Partners Inc. boosted its stake in Paychex by 3.3% in the second quarter. FAS Wealth Partners Inc. now owns 2,597 shares of the business services provider’s stock valued at $378,000 after acquiring an additional 83 shares in the last quarter. Somerset Trust Co grew its holdings in Paychex by 0.3% in the third quarter. Somerset Trust Co now owns 32,964 shares of the business services provider’s stock worth $4,179,000 after purchasing an additional 84 shares during the last quarter. Suncoast Equity Management increased its position in shares of Paychex by 0.6% during the third quarter. Suncoast Equity Management now owns 14,055 shares of the business services provider’s stock worth $1,782,000 after purchasing an additional 85 shares in the last quarter. Finally, 44 Wealth Management LLC increased its position in shares of Paychex by 2.7% during the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock worth $479,000 after purchasing an additional 86 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q3 beat and upbeat management commentary — Paychex reported stronger‑than‑expected Q3 results (EPS and revenue beat) and management emphasized AI initiatives and the Paycor integration as growth drivers. That underpins the company’s SaaS transition and recurring revenue trajectory. Paychex Q3 2026 Earnings Call Transcript Paychex Q3 Earnings Call Highlights
• Positive Sentiment: High‑profile bullish take — Jim Cramer argued AI disruption fears are overblown and highlighted the strong quarter, which can support investor confidence if sentiment shifts back to fundamentals. Jim Cramer on Paychex
• Positive Sentiment: Analyst/market notes urging retention — Research pieces (Zacks, Motley Fool) cite SaaS demand, AI productization and dividend yield as reasons to hold or accumulate through near‑term volatility. Reasons Why You Should Retain Paychex Stock Should You Buy the 3 Highest-Yielding Dividend Stocks
• Neutral Sentiment: Analysts maintain holds citing balanced risk/reward — Several firms (William Blair, BMO, Argus) kept neutral/hold stances, noting solid fundamentals but caution on macro and AI headwinds. These maintain market ambiguity. Solid Fundamentals but Macro and AI Headwinds Analysts’ Opinions Are Mixed
• Negative Sentiment: Multiple price‑target cuts and downgrades — Big banks (JPMorgan, Citigroup, Wells Fargo, TD Cowen) trimmed targets and some moved to underweight/hold after the quarter, which pressured sentiment and likely drove the intraday decline. Analysts also pared forecasts in aggregate. Paychex Analysts Cut Their Forecasts After Q3 Results

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Cantor Fitzgerald raised Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Stifel Nicolaus reduced their target price on Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. Guggenheim began coverage on Paychex in a research note on Thursday, March 19th. They issued a “neutral” rating for the company. Wolfe Research lowered their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. Finally, Stephens dropped their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $114.56.

Paychex Stock Performance

NASDAQ:PAYX opened at $91.68 on Monday. The company has a market capitalization of $32.85 billion, a P/E ratio of 20.19 and a beta of 0.91. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. Paychex, Inc. has a 12 month low of $86.89 and a 12 month high of $161.24. The firm has a fifty day simple moving average of $96.65 and a 200-day simple moving average of $110.64.

Paychex (NASDAQ:PAYX) last released its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.04. The firm had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The firm’s revenue was up 19.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.49 EPS. On average, equities research analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were issued a $1.08 dividend. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.7%. Paychex’s dividend payout ratio is currently 95.15%.

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

Paychex Company 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.