OFI Invest Asset Management Grows Stake in Paychex, Inc. $PAYX

OFI Invest Asset Management lifted its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 16,122.6% in the fourth quarter, Holdings Channel reports. The firm owned 145,517 shares of the business services provider’s stock after buying an additional 144,620 shares during the period. OFI Invest Asset Management’s holdings in Paychex were worth $16,324,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of PAYX. FAS Wealth Partners Inc. boosted its holdings in Paychex by 3.3% in the 2nd quarter. FAS Wealth Partners Inc. now owns 2,597 shares of the business services provider’s stock valued at $378,000 after purchasing an additional 83 shares during the last quarter. Somerset Trust Co boosted its holdings in Paychex by 0.3% in the 3rd quarter. Somerset Trust Co now owns 32,964 shares of the business services provider’s stock valued at $4,179,000 after purchasing an additional 84 shares during the last quarter. Suncoast Equity Management boosted its holdings in Paychex by 0.6% in the 3rd quarter. Suncoast Equity Management now owns 14,055 shares of the business services provider’s stock valued at $1,782,000 after purchasing an additional 85 shares during the last quarter. 44 Wealth Management LLC boosted its holdings in Paychex by 2.7% in the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after purchasing an additional 86 shares during the last quarter. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of Paychex by 3.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock worth $381,000 after acquiring an additional 89 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex Trading Down 1.9%

Shares of NASDAQ:PAYX opened at $89.89 on Thursday. Paychex, Inc. has a 52 week low of $86.89 and a 52 week high of $161.24. The company’s 50 day moving average is $94.24 and its two-hundred day moving average is $108.50. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. The company has a market cap of $32.21 billion, a PE ratio of 19.80 and a beta of 0.88.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, March 25th. The business services provider reported $1.71 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.04. The firm had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The company’s revenue was up 19.9% on a year-over-year basis. During the same period last year, the firm posted $1.49 EPS. Equities analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is 95.15%.

Paychex declared that its board has approved a share buyback plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks raised some medium‑term and near‑term forecasts — including Q1 2027 to $1.31, Q1 2028 to $1.54, FY2026 to $5.50 and FY2027 to $5.89 — which suggests upside to Paychex’s longer‑run earnings trajectory and provides some offset to weaker quarters.
• Neutral Sentiment: Standalone comparative pieces (e.g., head‑to‑head analysis with Cellebrite) are informational but not likely to move the stock materially by themselves. Article Title
• Negative Sentiment: Zacks trimmed Q2 estimates — Q2 2027 to $1.35 (from $1.37) and Q2 2028 to $1.45 (from $1.52) — signaling softer near‑term profitability that can pressure the stock.
• Negative Sentiment: TD Cowen lowered its price target slightly to $94 and kept a “hold” rating, reducing near‑term upside expectations. MarketScreener
• Negative Sentiment: Recent coverage summarized as a consensus “Reduce” rating adds to negative analyst sentiment and could reinforce selling pressure. Article Title

Wall Street Analyst Weigh In

Several brokerages recently weighed in on PAYX. Stifel Nicolaus cut their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research note on Wednesday, December 17th. Royal Bank Of Canada cut their target price on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 19th. Citigroup cut their target price on shares of Paychex from $120.00 to $99.00 and set a “neutral” rating on the stock in a research note on Thursday, March 26th. Guggenheim began coverage on shares of Paychex in a research note on Thursday, March 19th. They set a “neutral” rating on the stock. Finally, Jefferies Financial Group cut their target price on shares of Paychex from $110.00 to $105.00 and set a “hold” rating on the stock in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $108.75.

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.