Asset Advisors Investment Management LLC Sells 42,234 Shares of Paychex, Inc. $PAYX

Key Points

• Asset Advisors cut its Paychex holding by 31% in Q4, selling 42,234 shares and leaving a 94,207‑share stake valued at about $10.57 million.
• Paychex beat quarterly expectations (Q1 EPS $1.71 vs $1.67 est.; revenue $1.81B, up 19.9% YoY), pays a $4.32 annual dividend (5.0% yield) with a high payout ratio (~95%), and its board authorized a $1.0 billion share repurchase program (~2.5% of shares).
• Analysts have grown cautious—MarketBeat shows a consensus rating of "Reduce" with an average target of $108.75 and multiple price‑target cuts—while shares trade near their 1‑year low (~$85.6) and institutional investors own ~83.5% of the stock.

Asset Advisors Investment Management LLC trimmed its position in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 31.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 94,207 shares of the business services provider's stock after selling 42,234 shares during the quarter. Asset Advisors Investment Management LLC's holdings in Paychex were worth $10,568,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Paychex by 17.2% during the third quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider's stock worth $4,787,151,000 after acquiring an additional 5,549,511 shares during the last quarter. Voloridge Investment Management LLC bought a new stake in Paychex during the third quarter worth approximately $117,809,000. Assenagon Asset Management S.A. increased its stake in Paychex by 209.1% during the third quarter. Assenagon Asset Management S.A. now owns 838,679 shares of the business services provider's stock worth $106,311,000 after acquiring an additional 567,352 shares during the last quarter. Select Equity Group L.P. increased its stake in Paychex by 15.9% during the second quarter. Select Equity Group L.P. now owns 4,051,413 shares of the business services provider's stock worth $589,319,000 after acquiring an additional 557,101 shares during the last quarter. Finally, Barclays PLC increased its stake in Paychex by 38.1% during the third quarter. Barclays PLC now owns 1,856,157 shares of the business services provider's stock worth $235,286,000 after acquiring an additional 511,728 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $85.57 on Monday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $161.24. The business has a 50 day simple moving average of $93.61 and a two-hundred day simple moving average of $107.76. The firm has a market capitalization of $30.66 billion, a PE ratio of 18.85 and a beta of 0.88. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.26 and a quick ratio of 1.26.

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

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were issued a $1.08 dividend. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 5.0%. Paychex's payout ratio is presently 95.15%.

Paychex announced that its Board of Directors has initiated a share repurchase plan on Friday, January 16th that permits the company to repurchase $1.00 billion in 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 usually a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Royal Bank Of Canada reduced their price objective on Paychex from $125.00 to $102.00 and set a "sector perform" rating on the stock in a research note on Thursday, March 19th. Guggenheim assumed coverage on Paychex in a research note on Thursday, March 19th. They set a "neutral" rating on the stock. Morgan Stanley reduced their price objective on Paychex from $123.00 to $107.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 26th. TD Cowen reduced their price objective on Paychex from $95.00 to $94.00 and set a "hold" rating on the stock in a research note on Tuesday, April 7th. Finally, Wells Fargo & Company reduced their price objective on Paychex from $116.00 to $95.00 and set an "underweight" rating on the stock in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, Paychex has a consensus rating of "Reduce" and an average price target of $108.75.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks raised several near‑term estimates (notably Q3 2028 to $1.70 EPS and Q3 2027 to $1.65 EPS) and increased FY2026/FY2027 forecasts modestly — supportive for forward earnings expectations and a reason some investors may buy the dip.
• Positive Sentiment: Zacks also raised Q1 2028 and certain early‑year quarterly estimates (Q1 2027 up to $1.31), which suggests pockets of better near‑term performance in Zacks' model.
• Neutral Sentiment: Standalone coverage pieces include a head‑to‑head analyst-style comparison that is informational but not a clear buy/sell trigger. Head-To-Head Analysis: Cellebrite DI and Paychex
• Negative Sentiment: Zacks lowered several other near‑term and longer‑range estimates (Q2 2028 to $1.45, Q2 2027 to $1.35, Q4 2026 to $1.31, Q4 2027 slightly to $1.58 and trimmed FY2028 to $6.33) — these downgrades feed concern about slowing growth and reduce upside in short‑term EPS visibility.
• Negative Sentiment: Independent research flagged near‑term growth worries and kept a cautious view on the name; such commentary can amplify selling pressure. Paychex: Staying Neutral Because Of Near-Term Growth Concerns
• Negative Sentiment: Market summary coverage reported a consensus analyst rating of "Reduce," which tends to pressure the stock as index and discretionary sellers react. Paychex Given Consensus Rating of "Reduce" by Analysts

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.

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