Welch Group LLC Raises Stock Position in Paychex, Inc. $PAYX

Welch Group LLC increased its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 2.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 406,394 shares of the business services provider’s stock after acquiring an additional 7,901 shares during the quarter. Paychex comprises 2.0% of Welch Group LLC’s holdings, making the stock its 25th biggest position. Welch Group LLC’s holdings in Paychex were worth $51,515,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently bought and sold shares of PAYX. Brighton Jones LLC grew its holdings in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after purchasing an additional 1,190 shares during the last quarter. Bison Wealth LLC boosted its position 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 worth $566,000 after purchasing an additional 117 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of Paychex by 51.3% in the 1st quarter. Wellington Management Group LLP now owns 54,512 shares of the business services provider’s stock worth $8,410,000 after purchasing an additional 18,485 shares in the last quarter. Quantbot Technologies LP purchased a new position in Paychex during the 1st quarter worth $254,000. Finally, T. Rowe Price Investment Management Inc. acquired a new position in Paychex during the 1st quarter valued at about $406,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Some analysts included Paychex in a bullish roundup, highlighting the company’s durable payroll/HR cash flows and dividend track record — a reason long-term investors might view any pullback as a buy opportunity. Analysts Offer Insights on Technology Companies: Bullish (BLSH) and Paychex (PAYX)
• Neutral Sentiment: Citigroup left its rating at Neutral, signaling no imminent upgrade catalyst from that shop and reinforcing cautious institutional sentiment. Citigroup maintains Paychex (PAYX) neutral recommendation
• Neutral Sentiment: A Globe & Mail piece notes analysts are conflicted on Paychex alongside other tech names — meaning mixed views are keeping the stock range-bound until clearer earnings/guide signals emerge. Analysts Conflicted on These Technology Names: Circle Internet Group, Inc. Class A (CRCL) and Paychex (PAYX)
• Neutral Sentiment: Coverage of Q2 metrics breaks down revenue and EPS drivers; the report provides context but did not change consensus materially, so it’s information-rich but not a definitive catalyst. Paychex (PAYX) Reports Q2 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: MarketWatch notes Paychex had daily gains but underperformed peers on the day, indicating relative weakness even amid modest positive moves. Paychex Inc. stock underperforms Monday when compared to competitors despite daily gains
• Negative Sentiment: Analysts collectively trimmed forecasts after Q2 results, which pressures near-term estimates and investor expectations for FY guidance. Paychex Analysts Slash Their Forecasts Following Q2 Earnings
• Negative Sentiment: JPMorgan cut its price target to $125 and moved to Underweight, signaling a more bearish view among a major institutional desk. JPMorgan maintains/changes on Paychex
• Negative Sentiment: Morgan Stanley lowered its target to $123 and Stephens trimmed its target to $125 while keeping equal-weight ratings — multiple PT cuts increase downside risk and reduce analyst-driven support. Paychex price target changes Stephens adjusts price target on Paychex to 125
• Negative Sentiment: Commentary from Jim Cramer noting that “Paychex tends to sell off on earnings” reinforces investor wariness about post-earnings volatility and could amplify selling on negative surprises. Jim Cramer Notes “Paychex Tends to Sell off on Earnings”

Analyst Ratings Changes

Several equities research analysts have weighed in on PAYX shares. BMO Capital Markets lowered their price target on Paychex from $140.00 to $121.00 and set a “market perform” rating for the company in a report on Tuesday, December 9th. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research report on Monday, December 15th. Argus lowered their price objective on shares of Paychex from $170.00 to $150.00 in a research note on Thursday, October 2nd. Stephens dropped their price objective on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday. Finally, Stifel Nicolaus cut their target price on Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. Fourteen research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $127.00.

Paychex Stock Performance

NASDAQ PAYX opened at $114.88 on Tuesday. The firm has a market capitalization of $41.34 billion, a P/E ratio of 26.05 and a beta of 0.91. The stock has a 50-day simple moving average of $115.83 and a two-hundred day simple moving average of $131.30. 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 $108.00 and a fifty-two week high of $161.24.

Paychex (NASDAQ:PAYX) last posted its earnings results 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. The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.Paychex’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the company earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, equities analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th were paid a dividend of $1.08 per share. The ex-dividend date of this dividend was Friday, November 7th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.8%. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

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.