Canada Pension Plan Investment Board Has $35.04 Million Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Canada Pension Plan Investment Board significantly increased its stake in Paychex, Inc. by purchasing an additional 118,402 shares, raising its ownership to approximately $35 million.
• Chairman Martin Mucci sold 97,526 shares, representing a 17.91% decrease in his ownership, while CEO John B. Gibson sold 12,370 shares, leading to a 13.14% reduction in his stake.
• Paychex announced a quarterly dividend of $1.08 per share, contributing to an annualized dividend yield of 3.1% and a payout ratio of 94.53%.

Canada Pension Plan Investment Board lifted its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 108.9% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 227,119 shares of the business services provider's stock after purchasing an additional 118,402 shares during the quarter. Canada Pension Plan Investment Board owned 0.06% of Paychex worth $35,040,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in PAYX. GAMMA Investing LLC grew its holdings in shares of Paychex by 20,236.7% during the 1st quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock valued at $177,899,000 after purchasing an additional 1,147,419 shares during the last quarter. Nuveen LLC bought a new stake in shares of Paychex during the 1st quarter valued at approximately $134,192,000. Charles Schwab Investment Management Inc. grew its holdings in shares of Paychex by 7.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock valued at $1,663,474,000 after purchasing an additional 737,542 shares during the last quarter. Neuberger Berman Group LLC grew its holdings in shares of Paychex by 117.6% during the 1st quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider's stock valued at $187,512,000 after purchasing an additional 657,871 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Paychex by 25.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,844,949 shares of the business services provider's stock valued at $438,919,000 after purchasing an additional 581,410 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Paychex Trading Down 0.2%

Shares of NASDAQ PAYX traded down $0.33 during midday trading on Wednesday, reaching $135.63. The stock had a trading volume of 1,549,203 shares, compared to its average volume of 1,994,196. The firm has a market cap of $48.86 billion, a price-to-earnings ratio of 29.68, a price-to-earnings-growth ratio of 3.19 and a beta of 0.91. Paychex, Inc. has a twelve month low of $128.92 and a twelve month high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28. The company's 50 day moving average price is $141.87 and its 200 day moving average price is $147.24.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.19. The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. Paychex had a net margin of 29.75% and a return on equity of 45.01%. During the same quarter in the previous year, the company earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. As a group, sell-side analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date was Monday, July 21st. Paychex's payout ratio is presently 94.53%.

Insiders Place Their Bets

In related news, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the transaction, the chief executive officer owned 81,755 shares in the company, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the transaction, the chairman owned 446,917 shares in the company, valued at $64,878,940.89. The trade was a 17.91% decrease in their position. The disclosure for this sale can be found here. 11.40% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Stifel Nicolaus decreased their price target on shares of Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a report on Thursday, June 26th. UBS Group reduced their target price on shares of Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a report on Thursday, June 26th. Barclays set a $155.00 target price on shares of Paychex and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. Citigroup reduced their target price on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a report on Thursday, August 21st. Finally, Morgan Stanley reduced their target price on shares of Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a report on Friday, June 27th. Ten analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $149.70.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.