US Bancorp DE Sells 19,660 Shares of Paychex, Inc. $PAYX

Key Points

• US Bancorp DE reduced its shareholding in Paychex, Inc. by 9.5%, selling 19,660 shares and maintaining ownership of 187,546 shares valued at $27.28 million.
• Paychex has set its FY 2026 guidance for earnings per share between 5.428 and 5.528, showcasing positive growth indicated by a 16.8% increase in quarterly revenue year-over-year.
• The company announced a quarterly dividend of $1.08 per share, with an annualized yield of 3.4%, reflecting a dividend payout ratio of 97.08%.

US Bancorp DE trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 9.5% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 187,546 shares of the business services provider's stock after selling 19,660 shares during the quarter. US Bancorp DE owned 0.05% of Paychex worth $27,281,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its stake in shares of Paychex by 26.3% in the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after purchasing an additional 1,190 shares during the last quarter. Bison Wealth LLC boosted its stake in shares of Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock valued at $566,000 after purchasing an additional 117 shares during the last quarter. GAMMA Investing LLC boosted its stake in shares of Paychex by 31.8% in the 1st quarter. GAMMA Investing LLC now owns 7,474 shares of the business services provider's stock valued at $1,153,000 after purchasing an additional 1,804 shares during the last quarter. CX Institutional boosted its stake in shares of Paychex by 11.5% in the 1st quarter. CX Institutional now owns 3,172 shares of the business services provider's stock valued at $489,000 after purchasing an additional 327 shares during the last quarter. Finally, Simon Quick Advisors LLC boosted its stake in shares of Paychex by 31.1% in the 1st quarter. Simon Quick Advisors LLC now owns 7,268 shares of the business services provider's stock valued at $1,121,000 after purchasing an additional 1,725 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on PAYX shares. Barclays set a $155.00 price objective on shares of Paychex and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. Argus cut their target price on shares of Paychex from $170.00 to $150.00 in a research note on Thursday, October 2nd. 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. Weiss Ratings upgraded shares of Paychex from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday. Finally, Wolfe Research lowered their target price on shares of Paychex from $145.00 to $140.00 and set an "underperform" rating for the company in a report on Friday, September 26th. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $141.29.

Paychex Stock Performance

NASDAQ PAYX opened at $125.55 on Friday. Paychex, Inc. has a 52-week low of $119.02 and a 52-week high of $161.24. The company has a 50-day simple moving average of $133.78 and a 200 day simple moving average of $143.73. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.27 and a current ratio of 1.27. The company has a market capitalization of $45.18 billion, a PE ratio of 28.21, a price-to-earnings-growth ratio of 2.86 and a beta of 0.92.

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 (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.02. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter last year, the company posted $1.16 earnings per share. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. On average, research analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be paid a $1.08 dividend. The ex-dividend date 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 presently 97.08%.

Insider Buying and Selling at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction dated 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 transaction, the chief executive officer owned 81,755 shares in the company, valued at $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 Securities & Exchange Commission, which is available at the SEC website. 0.80% of the stock is owned by insiders.

About Paychex

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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