Teza Capital Management LLC Acquires New Holdings in Paychex, Inc. $PAYX

Key Points

• Teza Capital Management LLC has acquired a new stake in Paychex, Inc., purchasing 5,180 shares valued at approximately $799,000.
• Institutional investors hold a significant share of Paychex's stock, with 83.47% owned by such entities, including notable increases from firms like Select Equity Group and GAMMA Investing.
• Paychex's most recent earnings report showed $1.19 earnings per share, meeting analysts' estimates, along with a quarterly revenue of $1.43 billion.

Teza Capital Management LLC acquired a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 5,180 shares of the business services provider's stock, valued at approximately $799,000.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Select Equity Group L.P. raised its stake in shares of 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 valued at $539,102,000 after acquiring an additional 1,738,372 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Paychex by 20,236.7% during the first quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock valued at $177,899,000 after acquiring an additional 1,147,419 shares during the last quarter. Nuveen LLC bought a new position in shares of Paychex during the first quarter valued at $134,192,000. Charles Schwab Investment Management Inc. raised its stake in shares of 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 valued at $1,663,474,000 after acquiring an additional 737,542 shares during the last quarter. Finally, Neuberger Berman Group LLC raised its stake in shares of Paychex by 117.6% during the first quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider's stock valued at $187,512,000 after acquiring an additional 657,871 shares during the last quarter. Institutional investors own 83.47% of the company's stock.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $135.44 on Friday. Paychex, Inc. has a twelve month low of $128.92 and a twelve month high of $161.24. The firm has a fifty day simple moving average of $141.62 and a 200 day simple moving average of $147.06. The company has a market capitalization of $48.71 billion, a PE ratio of 29.64, a P/E/G ratio of 3.10 and a beta of 0.91. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share for the quarter, hitting analysts' consensus estimates of $1.19. Paychex had a net margin of 29.75% and a return on equity of 45.01%. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the firm earned $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. On average, sell-side analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, July 21st were issued a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Monday, July 21st. Paychex's dividend payout ratio (DPR) is presently 94.53%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Jefferies Financial Group set a $140.00 price target on shares of Paychex and gave the company a "hold" rating in a research note on Thursday, June 26th. Citigroup dropped their price target on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a research note on Thursday, August 21st. Stifel Nicolaus dropped their price target on shares of Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a research report on Thursday, June 26th. BMO Capital Markets started coverage on shares of Paychex in a research report on Thursday, July 10th. They issued a "market perform" rating and a $160.00 price target on the stock. Finally, Royal Bank Of Canada set a $165.00 target price on shares of Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. Ten investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $149.70.

Insiders Place Their Bets

In other Paychex news, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the sale, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the sale, the chairman owned 446,917 shares of the company's stock, valued at $64,878,940.89. The trade was a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 11.40% of the company's stock.

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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