Swiss National Bank Sells 46,800 Shares of Paychex, Inc. $PAYX

Key Points

• Swiss National Bank trimmed its Paychex stake by 4.8%, selling 46,800 shares and leaving it with 934,500 shares (about 0.26% of the company) worth roughly $118.5 million.
• Paychex beat quarterly estimates (EPS $1.26 vs. $1.23; revenue $1.56B, +18.3% YoY), announced a $1.00 billion share repurchase program (up to 2.5% of shares), and pays a $1.08 quarterly dividend (4.5% yield; DPR ~97.96%).
• Analyst sentiment has cooled, with a consensus rating of "Reduce" and an average price target of $123.94 after several firms lowered targets and issued underweight/hold ratings.

Swiss National Bank cut its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 4.8% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 934,500 shares of the business services provider's stock after selling 46,800 shares during the period. Swiss National Bank owned about 0.26% of Paychex worth $118,457,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Brighton Jones LLC raised its stake in Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock worth $801,000 after acquiring an additional 1,190 shares in the last quarter. Bison Wealth LLC increased its position in Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after purchasing an additional 117 shares in the last quarter. Woodline Partners LP acquired a new position in Paychex during the 1st quarter worth approximately $3,333,000. Savant Capital LLC boosted its position in Paychex by 3.2% in the second quarter. Savant Capital LLC now owns 10,054 shares of the business services provider's stock valued at $1,462,000 after buying an additional 314 shares in the last quarter. Finally, AGF Management Ltd. grew its stake in shares of Paychex by 7.5% during the second quarter. AGF Management Ltd. now owns 19,308 shares of the business services provider's stock worth $2,809,000 after buying an additional 1,347 shares during the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Trading Down 3.2%

PAYX opened at $95.12 on Wednesday. Paychex, Inc. has a twelve month low of $86.89 and a twelve month high of $161.24. 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 company has a fifty day moving average of $101.57 and a 200-day moving average of $114.71. The stock has a market cap of $34.15 billion, a PE ratio of 21.57 and a beta of 0.91.

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 (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.03. The business 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%. Paychex's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, sell-side analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex announced that its board has authorized a stock repurchase plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were paid a dividend of $1.08 per share. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.5%. Paychex's dividend payout ratio (DPR) is currently 97.96%.

Analyst Upgrades and Downgrades

PAYX has been the subject of a number of recent research reports. JPMorgan Chase & Co. lowered their target price on Paychex from $140.00 to $125.00 and set an "underweight" rating for the company in a report on Monday, December 22nd. TD Cowen reaffirmed a "hold" rating on shares of Paychex in a research note on Monday, December 1st. Wells Fargo & Company cut their target price on shares of Paychex from $128.00 to $116.00 and set an "underweight" rating on the stock in a research report on Tuesday, December 9th. BMO Capital Markets dropped their price target on shares of Paychex from $140.00 to $121.00 and set a "market perform" rating for the company in a research note on Tuesday, December 9th. Finally, Royal Bank Of Canada decreased their price objective on Paychex from $150.00 to $125.00 and set a "sector perform" rating for the company in a report on Friday, December 5th. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus price target 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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