Rakuten Investment Management Inc. Acquires New Holdings in Paychex, Inc. $PAYX

Rakuten Investment Management Inc. bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 98,031 shares of the business services provider’s stock, valued at approximately $12,426,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Heartwood Wealth Advisors LLC bought a new position in shares of Paychex during the third quarter valued at $25,000. NewSquare Capital LLC increased its holdings in Paychex by 83.8% in the second quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock valued at $31,000 after purchasing an additional 98 shares during the period. GPS Wealth Strategies Group LLC raised its position in Paychex by 40.6% during the 2nd quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock worth $38,000 after purchasing an additional 76 shares during the last quarter. Whipplewood Advisors LLC lifted its holdings in Paychex by 94.0% during the 2nd quarter. Whipplewood Advisors LLC now owns 293 shares of the business services provider’s stock worth $43,000 after buying an additional 142 shares during the period. Finally, E Fund Management Hong Kong Co. Ltd. grew its position in shares of Paychex by 193.2% in the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 346 shares of the business services provider’s stock valued at $44,000 after buying an additional 228 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on PAYX shares. Citigroup lowered their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a research report on Monday, December 22nd. UBS Group decreased their target price on shares of Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a research report on Thursday, October 2nd. Stephens dropped their price target on shares of Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. Morgan Stanley reduced their price objective on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Monday, December 22nd. Finally, Robert W. Baird decreased their price objective on shares of Paychex from $153.00 to $148.00 and set a “neutral” rating for the company in a research report on Wednesday, October 1st. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $125.67.

Paychex Stock Down 0.2%

Shares of NASDAQ PAYX opened at $107.19 on Thursday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The firm has a market cap of $38.48 billion, a PE ratio of 24.31 and a beta of 0.91. The company’s fifty day simple moving average is $112.09 and its 200 day simple moving average is $125.56. Paychex, Inc. has a 12-month low of $106.80 and a 12-month high of $161.24.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.03. The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. 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 business earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th will be issued a dividend of $1.08 per share. The ex-dividend date is Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.0%. Paychex’s payout ratio is currently 97.96%.

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

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.