Citigroup Inc. Has $103.62 Million Stock Holdings in Paychex, Inc. $PAYX

Citigroup Inc. decreased its position in Paychex, Inc. (NASDAQ:PAYX) by 3.4% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 817,443 shares of the business services provider’s stock after selling 28,814 shares during the period. Citigroup Inc. owned 0.23% of Paychex worth $103,619,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. ABC Arbitrage SA increased its stake in shares of Paychex by 61.4% in the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after acquiring an additional 10,726 shares during the last quarter. Summit Global Investments raised its holdings in Paychex by 1,938.2% in the third quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock worth $6,103,000 after purchasing an additional 45,781 shares during the period. GSA Capital Partners LLP bought a new stake in shares of Paychex in the 3rd quarter valued at $1,877,000. Alps Advisors Inc. raised its stake in Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock worth $30,494,000 after buying an additional 41,114 shares during the period. Finally, Invesco Ltd. lifted its holdings in Paychex by 6.0% during the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock worth $637,820,000 after acquiring an additional 249,550 shares in the last quarter. 83.47% of the stock is owned by institutional investors.

Paychex Trading Down 1.2%

Shares of NASDAQ:PAYX opened at $91.24 on Monday. Paychex, Inc. has a 12-month low of $90.32 and a 12-month high of $161.24. The business has a 50 day moving average of $106.38 and a 200-day moving average of $118.45. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The stock has a market cap of $32.75 billion, a PE ratio of 20.69 and a beta of 0.90.

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

Paychex declared that its Board of Directors has initiated a share repurchase plan on Friday, January 16th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th will be given a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 4.7%. The ex-dividend date is Wednesday, January 28th. Paychex’s payout ratio is currently 97.96%.

Analyst Ratings Changes

Several analysts have commented on PAYX shares. Wells Fargo & Company dropped their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Jefferies Financial Group set a $110.00 price objective on shares of Paychex in a research report on Friday, December 19th. Stephens lowered their target price on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Finally, Citigroup dropped their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, Paychex has an average rating of “Reduce” and an average target price of $123.94.

About Paychex

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.