Cibc World Market Inc. Grows Holdings in Paychex, Inc. $PAYX

Cibc World Market Inc. raised its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 14.5% during the 3rd quarter, Holdings Channel.com reports. The firm owned 53,853 shares of the business services provider’s stock after purchasing an additional 6,815 shares during the period. Cibc World Market Inc.’s holdings in Paychex were worth $6,826,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Paychex by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 32,215,957 shares of the business services provider’s stock valued at $4,686,133,000 after purchasing an additional 408,114 shares during the period. State Street Corp increased its stake in Paychex by 2.6% in the 2nd quarter. State Street Corp now owns 14,066,067 shares of the business services provider’s stock worth $2,046,050,000 after buying an additional 355,294 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Paychex by 2.3% during the second 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 acquiring an additional 251,139 shares during the period. Geode Capital Management LLC lifted its position 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 acquiring an additional 274,947 shares in the last quarter. Finally, Invesco Ltd. boosted 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 acquiring an additional 249,550 shares during the period. 83.47% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

PAYX has been the topic of several recent analyst reports. Cantor Fitzgerald raised Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. BMO Capital Markets cut their price objective on shares of Paychex from $140.00 to $121.00 and set a “market perform” rating for the company in a report on Tuesday, December 9th. Stifel Nicolaus lowered their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a report on Wednesday, December 17th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Finally, TD Cowen reiterated a “hold” rating on shares of Paychex in a report on Monday, December 1st. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $123.94.

Paychex Trading Up 2.1%

Shares of PAYX opened at $94.38 on Friday. The company’s fifty day moving average is $108.43 and its 200 day moving average is $120.48. Paychex, Inc. has a fifty-two week low of $91.70 and a fifty-two week high of $161.24. The stock has a market capitalization of $33.88 billion, a PE ratio of 21.40 and a beta of 0.90. 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 issued its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. The business had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business’s revenue was up 18.3% on a year-over-year basis. During the same period last year, the company posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Sell-side analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

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

Paychex Announces Dividend

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

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.