Tectonic Advisors LLC Purchases 11,805 Shares of Paychex, Inc. $PAYX

Tectonic Advisors LLC lifted its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 17.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 79,708 shares of the business services provider’s stock after acquiring an additional 11,805 shares during the period. Tectonic Advisors LLC’s holdings in Paychex were worth $8,942,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Somerset Trust Co increased its position in shares of Paychex by 0.3% during the third quarter. Somerset Trust Co now owns 32,964 shares of the business services provider’s stock valued at $4,179,000 after acquiring an additional 84 shares in the last quarter. Suncoast Equity Management increased its position in shares of Paychex by 0.6% during the third quarter. Suncoast Equity Management now owns 14,055 shares of the business services provider’s stock valued at $1,782,000 after acquiring an additional 85 shares in the last quarter. 44 Wealth Management LLC increased its position in shares of Paychex by 2.7% during the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after acquiring an additional 86 shares in the last quarter. Simon Quick Advisors LLC increased its position in shares of Paychex by 1.5% during the third quarter. Simon Quick Advisors LLC now owns 6,126 shares of the business services provider’s stock valued at $777,000 after acquiring an additional 89 shares in the last quarter. Finally, Smartleaf Asset Management LLC increased its position in shares of Paychex by 3.5% during the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock valued at $381,000 after acquiring an additional 89 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Paychex Stock Performance

Shares of PAYX stock opened at $85.57 on Monday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $161.24. The firm has a fifty day moving average price of $93.61 and a 200-day moving average price of $107.76. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.26 and a quick ratio of 1.26. The company has a market cap of $30.66 billion, a price-to-earnings ratio of 18.85 and a beta of 0.88.

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

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

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were given 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 dividend yield of 5.0%. Paychex’s payout ratio is presently 95.15%.

Key Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks raised several near‑term estimates (notably Q3 2028 to $1.70 EPS and Q3 2027 to $1.65 EPS) and increased FY2026/FY2027 forecasts modestly — supportive for forward earnings expectations and a reason some investors may buy the dip.
• Positive Sentiment: Zacks also raised Q1 2028 and certain early‑year quarterly estimates (Q1 2027 up to $1.31), which suggests pockets of better near‑term performance in Zacks’ model.
• Neutral Sentiment: Standalone coverage pieces include a head‑to‑head analyst-style comparison that is informational but not a clear buy/sell trigger. Head-To-Head Analysis: Cellebrite DI and Paychex
• Negative Sentiment: Zacks lowered several other near‑term and longer‑range estimates (Q2 2028 to $1.45, Q2 2027 to $1.35, Q4 2026 to $1.31, Q4 2027 slightly to $1.58 and trimmed FY2028 to $6.33) — these downgrades feed concern about slowing growth and reduce upside in short‑term EPS visibility.
• Negative Sentiment: Independent research flagged near‑term growth worries and kept a cautious view on the name; such commentary can amplify selling pressure. Paychex: Staying Neutral Because Of Near-Term Growth Concerns
• Negative Sentiment: Market summary coverage reported a consensus analyst rating of “Reduce,” which tends to pressure the stock as index and discretionary sellers react. Paychex Given Consensus Rating of “Reduce” by Analysts

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on PAYX shares. BMO Capital Markets lifted their target price on shares of Paychex to $52.00 and gave the stock an “outperform” rating in a research report on Thursday, March 26th. Stifel Nicolaus cut their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a research report 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 for the company in a research report on Thursday, March 19th. Citigroup cut their target price on shares of Paychex from $120.00 to $99.00 and set a “neutral” rating for the company in a research report on Thursday, March 26th. Finally, Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $108.75.

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.