Paychex, Inc. $PAYX Shares Acquired by Varma Mutual Pension Insurance Co

Varma Mutual Pension Insurance Co lifted its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 8.9% during the third quarter, Holdings Channel.com reports. The fund owned 68,453 shares of the business services provider’s stock after acquiring an additional 5,600 shares during the period. Varma Mutual Pension Insurance Co’s holdings in Paychex were worth $8,677,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in shares of Paychex by 1.3% during the second quarter. Vanguard Group Inc. now owns 32,215,957 shares of the business services provider’s stock valued at $4,686,133,000 after buying an additional 408,114 shares during the last quarter. State Street Corp grew its stake in Paychex by 2.6% during the 2nd quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock valued at $2,046,050,000 after purchasing an additional 355,294 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in Paychex by 2.3% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 11,033,312 shares of the business services provider’s stock valued at $1,604,906,000 after purchasing an additional 251,139 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Paychex by 2.8% in the second quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock valued at $1,481,053,000 after purchasing an additional 274,947 shares during the period. Finally, Invesco Ltd. raised its stake in shares of Paychex by 6.0% in the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock worth $637,820,000 after purchasing an additional 249,550 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Price Performance

Shares of Paychex stock opened at $94.38 on Friday. The firm has a market cap of $33.88 billion, a PE ratio of 21.40 and a beta of 0.90. Paychex, Inc. has a twelve month low of $91.70 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 business has a 50-day moving average price of $108.43 and a 200 day moving average price of $120.48.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the prior year, the business posted $1.14 earnings per share. Paychex’s revenue for the quarter was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Sell-side analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex announced that its board has initiated a stock buyback program on Friday, January 16th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be given a $1.08 dividend. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.6%. Paychex’s dividend payout ratio (DPR) is 97.96%.

Analyst Ratings Changes

Several analysts have commented on PAYX shares. TD Cowen restated a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Wolfe Research lowered their price target on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. BMO Capital Markets reduced their price objective on 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, Jefferies Financial Group set a $110.00 target price on Paychex in a research note on Friday, December 19th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price 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.