Korea Investment CORP Boosts Stake in Paychex, Inc. $PAYX

Korea Investment CORP lifted its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 20.6% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 197,444 shares of the business services provider’s stock after buying an additional 33,735 shares during the period. Korea Investment CORP owned approximately 0.05% of Paychex worth $25,028,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the stock. Heartwood Wealth Advisors LLC purchased a new position in Paychex in the 3rd quarter worth $25,000. MMA Asset Management LLC acquired a new position in shares of Paychex in the third quarter valued at about $32,000. Westfuller Advisors LLC acquired a new position in shares of Paychex in the third quarter valued at about $35,000. Caitlin John LLC purchased a new position in shares of Paychex in the third quarter worth about $36,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its stake in shares of Paychex by 193.2% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 346 shares of the business services provider’s stock worth $44,000 after purchasing an additional 228 shares during the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Royal Bank Of Canada dropped their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. TD Cowen restated a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Citigroup dropped their price objective on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a report on Monday, December 22nd. JPMorgan Chase & Co. cut their price objective on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a research note on Monday, December 22nd. Finally, Stephens reduced their target price on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. One 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. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $123.94.

Paychex Stock Down 3.2%

Shares of PAYX stock opened at $95.12 on Wednesday. Paychex, Inc. has a twelve month low of $86.89 and a twelve month high of $161.24. The stock has a market cap of $34.15 billion, a P/E ratio of 21.57 and a beta of 0.91. The stock has a 50 day moving average of $101.57 and a 200 day moving average of $114.71. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17.

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 return on equity of 46.38% and a net margin of 26.45%.The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were issued a dividend of $1.08 per share. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a yield of 4.5%. Paychex’s dividend payout ratio is 97.96%.

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

About Paychex

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.