Sumitomo Life Insurance Co. Raises Position in Paychex, Inc. $PAYX

Sumitomo Life Insurance Co. raised its position in Paychex, Inc. (NASDAQ:PAYX) by 15.1% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 72,400 shares of the business services provider’s stock after buying an additional 9,500 shares during the period. Sumitomo Life Insurance Co.’s holdings in Paychex were worth $9,177,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Heartwood Wealth Advisors LLC acquired a new position in Paychex in the 3rd quarter valued at about $25,000. NewSquare Capital LLC lifted its position in shares of Paychex by 83.8% during the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock worth $31,000 after buying an additional 98 shares during the last quarter. MMA Asset Management LLC purchased a new position in shares of Paychex during the third quarter worth about $32,000. Westfuller Advisors LLC acquired a new stake in shares of Paychex during the third quarter worth about $35,000. Finally, GPS Wealth Strategies Group LLC boosted its position in shares of Paychex by 40.6% in the 2nd quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after purchasing an additional 76 shares during the period. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Up 3.1%

Paychex stock opened at $91.23 on Thursday. Paychex, Inc. has a fifty-two week low of $86.89 and a fifty-two week high of $161.24. The firm has a market capitalization of $32.75 billion, a price-to-earnings ratio of 20.69 and a beta of 0.90. The stock’s fifty day moving average is $104.78 and its two-hundred day moving average is $117.52. 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 (NASDAQ:PAYX) last released its quarterly earnings data 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 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%. The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Analysts predict that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Wednesday, January 28th will be given a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Wednesday, January 28th. Paychex’s payout ratio is currently 97.96%.

Paychex declared that its board has authorized a share buyback program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Morgan Stanley reduced their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Stephens cut their target price on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Wolfe Research decreased their price target on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research note on Wednesday, December 10th. Royal Bank Of Canada dropped their price objective on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research note on Friday, December 5th. Finally, Stifel Nicolaus dropped their price target on Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Paychex currently has an average rating of “Reduce” and a consensus target price of $123.94.

Paychex 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.