Paychex, Inc. $PAYX Shares Sold by Allspring Global Investments Holdings LLC

Key Points

• Allspring Global Investments Holdings LLC has reduced its stake in Paychex, Inc. by 6.6%, selling 2,706 shares for a total of $5.6 million in holdings.
• Paychex reported earnings of $1.22 per share for the recent quarter, surpassing expectations, with a revenue of $1.54 billion, reflecting a 16.8% year-over-year increase.
• The company has announced a quarterly dividend of $1.08 per share, set to be paid on November 26th, with an annualized dividend yield of 3.4%.

Allspring Global Investments Holdings LLC lowered its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 6.6% in the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 38,226 shares of the business services provider's stock after selling 2,706 shares during the period. Allspring Global Investments Holdings LLC's holdings in Paychex were worth $5,635,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of PAYX. Alpine Bank Wealth Management acquired a new stake in Paychex in the 1st quarter valued at approximately $34,000. MorganRosel Wealth Management LLC acquired a new position in Paychex during the first quarter valued at $34,000. Quarry LP acquired a new stake in Paychex during the first quarter valued at $34,000. Tsfg LLC raised its holdings in Paychex by 122.3% during the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after buying an additional 126 shares in the last quarter. Finally, Nova Wealth Management Inc. bought a new position in shares of Paychex in the first quarter worth about $38,000. Institutional investors own 83.47% of the company's stock.

Paychex Stock Performance

Shares of PAYX stock opened at $126.59 on Tuesday. The firm's 50 day moving average is $132.28 and its 200 day moving average is $142.59. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $45.56 billion, a P/E ratio of 28.45, a PEG ratio of 2.89 and a beta of 0.92. Paychex, Inc. has a 12 month low of $119.02 and a 12 month high of $161.24.

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

Paychex Announces Dividend

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

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Jefferies Financial Group set a $130.00 price objective on Paychex in a report on Tuesday, September 30th. BMO Capital Markets reduced their target price on shares of Paychex from $143.00 to $140.00 and set a "market perform" rating for the company in a research note on Wednesday, October 1st. Wolfe Research reduced their price objective on shares of Paychex from $145.00 to $140.00 and set an "underperform" rating for the company in a research note on Friday, September 26th. Robert W. Baird lowered their price target on shares of Paychex from $153.00 to $148.00 and set a "neutral" rating on the stock in a report on Wednesday, October 1st. Finally, Morgan Stanley raised their target price on shares of Paychex from $132.00 to $133.00 and gave the stock an "equal weight" rating in a report on Monday. One analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Paychex currently has a consensus rating of "Reduce" and a consensus price target of $141.36.

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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