Quantitative Investment Management LLC Makes New Investment in Paychex, Inc. $PAYX

Key Points

• Quantitative Investment Management LLC bought a new stake of 11,491 Paychex shares (about $1.456M) in Q3, and overall institutional ownership is very high at 83.47% with several other funds also adding or opening positions.
• Paychex's Board authorized a $1.0 billion share buyback (up to 2.5% of outstanding shares) and the company recently paid a quarterly dividend of $1.08 (annualized $4.32), yielding about 4.7%.
• Paychex beat estimates in the latest quarter with $1.26 EPS vs. $1.23 expected and revenue up 18.3% YoY to $1.56B, set FY2026 guidance of $5.48–$5.53 EPS, while analysts' average forecast is ~4.99 EPS and the consensus rating is "Reduce" (avg. price target $123.94).

Quantitative Investment Management LLC bought a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 11,491 shares of the business services provider's stock, valued at approximately $1,456,000.

Several other hedge funds have also made changes to their positions in the company. Sei Investments Co. lifted its stake in Paychex by 97.9% in the third quarter. Sei Investments Co. now owns 310,138 shares of the business services provider's stock worth $39,312,000 after acquiring an additional 153,458 shares during the period. Elevatus Welath Management grew its holdings in Paychex by 0.6% during the 3rd quarter. Elevatus Welath Management now owns 22,941 shares of the business services provider's stock worth $2,908,000 after acquiring an additional 136 shares in the last quarter. Wakefield Asset Management LLLP purchased a new position in Paychex during the 3rd quarter valued at about $401,000. Kepler Cheuvreux Suisse SA purchased a new position in Paychex during the 3rd quarter valued at about $12,785,000. Finally, Magnetar Financial LLC bought a new stake in shares of Paychex in the 3rd quarter valued at about $625,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Down 2.5%

NASDAQ:PAYX opened at $91.67 on Friday. The company's 50-day simple moving average is $100.80 and its 200-day simple moving average is $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, Inc. has a fifty-two week low of $86.89 and a fifty-two week high of $161.24. The stock has a market capitalization of $32.91 billion, a P/E ratio of 20.79 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping 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 firm had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same quarter in the previous year, the business posted $1.14 EPS. Paychex'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. On average, equities analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex declared that its Board of Directors has authorized a stock buyback program on Friday, January 16th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Paychex Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on PAYX shares. Stifel Nicolaus lowered their price target on shares of Paychex from $137.00 to $126.00 and set a "hold" rating for the company in a research report on Wednesday, December 17th. JPMorgan Chase & Co. cut their price objective on shares of Paychex from $140.00 to $125.00 and set an "underweight" rating on the stock in a report on Monday, December 22nd. Wolfe Research reduced their price objective on shares of Paychex from $130.00 to $115.00 and set an "underperform" rating for the company in a research note on Wednesday, December 10th. Cantor Fitzgerald upgraded Paychex to a "strong sell" rating in a report on Tuesday, January 27th. Finally, TD Cowen reaffirmed a "hold" rating on shares of Paychex in a research report on Monday, December 1st. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Paychex currently has an average rating of "Reduce" and an average price target of $123.94.

Paychex 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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