Capital World Investors Has $55.77 Million Stock Holdings in Paychex, Inc. $PAYX

Key Points

• Capital World Investors cut its Paychex stake by 70.5% in Q3, selling 1,050,014 shares and ending the period with 440,000 shares worth about $55.77 million (≈0.12% ownership).
• Paychex beat Q results (EPS $1.26 vs. $1.23; revenue up 18.3% YoY), set FY2026 guidance of $5.48–$5.53 EPS, and the board authorized a $1.0 billion buyback while continuing a $1.08 quarterly dividend (≈4.7% yield).

Capital World Investors lessened its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 70.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 440,000 shares of the business services provider's stock after selling 1,050,014 shares during the quarter. Capital World Investors owned approximately 0.12% of Paychex worth $55,774,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. grew its holdings 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 valued at $4,787,151,000 after purchasing an additional 5,549,511 shares during the period. Norges Bank bought a new stake in Paychex in the second quarter valued at approximately $302,244,000. Marshall Wace LLP increased its stake in Paychex by 179.5% in the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider's stock valued at $156,854,000 after purchasing an additional 692,533 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Paychex by 29.2% in the second quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider's stock valued at $369,901,000 after purchasing an additional 574,337 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in shares of 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 purchasing an additional 567,352 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Down 2.5%

NASDAQ:PAYX opened at $91.67 on Friday. Paychex, Inc. has a twelve month low of $86.89 and a twelve month high of $161.24. The firm has a market capitalization of $32.91 billion, a price-to-earnings ratio of 20.79 and a beta of 0.91. 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's 50 day moving average price is $100.80 and its two-hundred day moving average price is $114.41.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.55 billion. During the same period last year, the business earned $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. Equities research analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex announced that its Board of Directors has initiated a stock buyback 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 purchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is 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 paid 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 payout ratio is currently 97.96%.

Wall Street Analysts Forecast Growth

PAYX has been the topic of several recent analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Paychex in a report on Monday, December 29th. Stifel Nicolaus lowered their price target on Paychex from $137.00 to $126.00 and set a "hold" rating for the company in a report on Wednesday, December 17th. JPMorgan Chase & Co. cut their price objective on Paychex from $140.00 to $125.00 and set an "underweight" rating on the stock in a report on Monday, December 22nd. Argus decreased their price objective on Paychex from $150.00 to $130.00 and set a "buy" rating for the company in a research report on Friday, January 2nd. Finally, 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 research note on Friday, December 5th. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $123.94.

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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