FORA Capital LLC Makes New $2.27 Million Investment in Paychex, Inc. $PAYX

FORA Capital LLC purchased a new stake in Paychex, Inc. (NASDAQ:PAYX) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 17,927 shares of the business services provider’s stock, valued at approximately $2,272,000.

A number of other institutional investors also recently modified their holdings of PAYX. ABC Arbitrage SA grew its stake in shares of Paychex by 61.4% during the third quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock worth $3,576,000 after buying an additional 10,726 shares during the last quarter. GSA Capital Partners LLP acquired a new position in shares of Paychex during the third quarter worth $1,877,000. Summit Global Investments lifted its stake in shares of Paychex by 1,938.2% in the 3rd quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock valued at $6,103,000 after acquiring an additional 45,781 shares during the last quarter. Alps Advisors Inc. lifted its stake in shares of Paychex by 20.6% in the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock valued at $30,494,000 after acquiring an additional 41,114 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Paychex by 6.0% during the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after acquiring an additional 249,550 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Price Performance

Shares of PAYX opened at $92.61 on Friday. The business has a 50-day moving average of $100.48 and a 200-day moving average of $114.09. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The company has a market capitalization of $33.24 billion, a price-to-earnings ratio of 21.00 and a beta of 0.91. Paychex, Inc. has a 1 year low of $86.89 and a 1 year high of $161.24.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 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 analysts’ expectations of $1.55 billion. During the same period in the prior year, the business posted $1.14 earnings per share. The firm’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. As a group, equities research analysts anticipate 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 outstanding shares. This repurchase authorization allows the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Paychex Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Royal Bank Of Canada lowered their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a report on Friday, December 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. TD Cowen restated a “hold” rating on shares of Paychex in a report on Monday, December 1st. Citigroup dropped their price objective on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. Finally, Argus cut their target price on shares of Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research report on Friday, January 2nd. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Paychex presently has a consensus rating of “Reduce” and an average price target of $122.81.

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.