Entropy Technologies LP Purchases New Holdings in Paychex, Inc. $PAYX

Key Points

• Entropy Technologies LP opened a new position in Paychex, buying 43,767 shares worth about $5.55 million in Q3, and institutional investors now own roughly 83.47% of the company.
• Several Wall Street analysts have trimmed price targets and issued cautious ratings; the stock's consensus rating on MarketBeat is "Reduce" with a consensus target price of $123.94.
• Paychex modestly beat Q3 expectations with 18.3% revenue growth year-over-year, set FY2026 guidance of $5.48–$5.53 EPS, and its Board authorized a $1.0 billion buyback while maintaining a 4.7% annualized dividend yield.

Entropy Technologies LP purchased a new position in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 43,767 shares of the business services provider's stock, valued at approximately $5,548,000.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in shares of Paychex by 17.2% in the 3rd quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider's stock valued at $4,787,151,000 after acquiring an additional 5,549,511 shares during the period. Norges Bank acquired a new position in Paychex during the 2nd quarter valued at approximately $302,244,000. Marshall Wace LLP raised its stake in Paychex by 179.5% in the 2nd quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider's stock worth $156,854,000 after acquiring an additional 692,533 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Paychex by 29.2% in the second quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider's stock worth $369,901,000 after purchasing an additional 574,337 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Paychex by 209.1% in the 3rd quarter. Assenagon Asset Management S.A. now owns 838,679 shares of the business services provider's stock valued at $106,311,000 after acquiring an additional 567,352 shares during the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on PAYX shares. Citigroup decreased their price target on Paychex from $139.00 to $120.00 and set a "neutral" rating for the company in a report on Monday, December 22nd. TD Cowen reissued a "hold" rating on shares of Paychex in a research note on Monday, December 1st. Stephens reduced their price target on shares of Paychex from $135.00 to $125.00 and set an "equal weight" rating on the stock in a research report on Monday, December 22nd. Royal Bank Of Canada decreased their target price on Paychex from $150.00 to $125.00 and set a "sector perform" rating on the stock in a research note on Friday, December 5th. Finally, Stifel Nicolaus reduced their price objective on Paychex from $137.00 to $126.00 and set a "hold" rating on the stock in a research note on Wednesday, December 17th. 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. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $123.94.

Paychex Price Performance

Paychex stock opened at $91.67 on Friday. The company has a market cap of $32.91 billion, a P/E ratio of 20.79 and a beta of 0.91. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24. The business has a fifty day moving average of $100.80 and a two-hundred day moving average of $114.41. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The firm's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the business posted $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts predict 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 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 buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were paid a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex's dividend payout ratio is presently 97.96%.

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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