Nordea Investment Management AB Acquires 110,766 Shares of Paychex, Inc. $PAYX

Key Points

• Nordea Investment Management AB increased its holdings of Paychex, Inc. by 15.1%, acquiring 110,766 additional shares, bringing its total to 846,180 shares worth approximately $121.3 million.
• Paychex reported a quarterly earnings per share of $1.22, exceeding analysts' expectations, with revenue reaching $1.54 billion, marking a 16.8% increase year-over-year.
• The company announced a quarterly dividend of $1.08 per share, with a payout ratio of 97.08%, reflecting its commitment to returning value to shareholders.

Nordea Investment Management AB boosted its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 15.1% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 846,180 shares of the business services provider's stock after purchasing an additional 110,766 shares during the period. Nordea Investment Management AB owned about 0.23% of Paychex worth $121,317,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in Paychex by 0.9% during the first quarter. Vanguard Group Inc. now owns 31,807,843 shares of the business services provider's stock worth $4,907,314,000 after purchasing an additional 286,818 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Paychex by 7.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock worth $1,663,474,000 after purchasing an additional 737,542 shares during the period. Northern Trust Corp lifted its stake in Paychex by 3.8% during the first quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock worth $769,731,000 after purchasing an additional 181,628 shares during the period. Invesco Ltd. lifted its stake in Paychex by 0.7% during the first quarter. Invesco Ltd. now owns 4,135,296 shares of the business services provider's stock worth $637,993,000 after purchasing an additional 30,670 shares during the period. Finally, Select Equity Group L.P. lifted its stake in Paychex by 99.0% during the first quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock worth $539,102,000 after purchasing an additional 1,738,372 shares during the period. Institutional investors own 83.47% of the company's stock.

Paychex Stock Performance

Shares of Paychex stock opened at $126.56 on Friday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27. The firm has a market cap of $45.55 billion, a P/E ratio of 28.44, a P/E/G ratio of 2.89 and a beta of 0.92. The firm has a 50 day simple moving average of $132.52 and a 200 day simple moving average of $142.87. Paychex, Inc. has a fifty-two week low of $119.02 and a fifty-two week high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Tuesday, September 30th. The business services provider reported $1.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.02. The business had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.54 billion. Paychex had a net margin of 27.85% and a return on equity of 45.17%. Paychex's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.16 earnings per share. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. Sell-side analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th will be issued a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Friday, November 7th. Paychex's payout ratio is currently 97.08%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on PAYX shares. BMO Capital Markets dropped their price objective on shares of Paychex from $143.00 to $140.00 and set a "market perform" rating for the company in a report on Wednesday, October 1st. Citigroup dropped their price objective on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. Jefferies Financial Group set a $130.00 price objective on shares of Paychex in a report on Tuesday, September 30th. UBS Group dropped their price objective on shares of Paychex from $140.00 to $132.00 and set a "neutral" rating for the company in a report on Thursday, October 2nd. Finally, Morgan Stanley dropped their price objective on shares of Paychex from $148.00 to $132.00 and set an "equal weight" rating for the company in a report on Wednesday, October 1st. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $141.29.

Paychex Profile

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.

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