TD Asset Management Inc Trims Position in Paychex, Inc. $PAYX

TD Asset Management Inc trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 47.0% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 864,676 shares of the business services provider’s stock after selling 767,246 shares during the quarter. TD Asset Management Inc owned about 0.24% of Paychex worth $109,606,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in PAYX. Brighton Jones LLC lifted its stake in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after purchasing an additional 1,190 shares during the last quarter. Bison Wealth LLC increased its holdings in shares of Paychex by 3.0% in the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after buying an additional 117 shares during the period. Woodline Partners LP bought a new stake in shares of Paychex in the 1st quarter valued at about $3,333,000. AlphaQuest LLC bought a new stake in shares of Paychex in the 2nd quarter valued at about $61,000. Finally, Ashton Thomas Private Wealth LLC boosted its holdings in Paychex by 18.9% during the 2nd quarter. Ashton Thomas Private Wealth LLC now owns 11,893 shares of the business services provider’s stock valued at $1,730,000 after acquiring an additional 1,890 shares during the period. Institutional investors own 83.47% of the company’s stock.

Paychex Stock Up 3.1%

Paychex stock opened at $91.23 on Thursday. The stock has a market cap of $32.75 billion, a PE ratio of 20.69 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. The stock has a fifty day moving average of $104.78 and a 200 day moving average of $117.52. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results 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 return on equity of 46.38% and a net margin of 26.45%.The business’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex declared that its Board of Directors has approved a share buyback plan on Friday, January 16th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Paychex Announces Dividend

The business also recently announced 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. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 4.7%. Paychex’s dividend payout ratio is currently 97.96%.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Royal Bank Of Canada reduced their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a report on Friday, December 5th. Citigroup reduced their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, December 22nd. JPMorgan Chase & Co. decreased their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a report on Monday, December 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a report on Monday, December 29th. Finally, Stifel Nicolaus reduced their target price on shares of 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 given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average 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.