GSA Capital Partners LLP Invests $1.88 Million in Paychex, Inc. $PAYX

GSA Capital Partners LLP acquired a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 14,806 shares of the business services provider’s stock, valued at approximately $1,877,000.

Several other hedge funds have also recently added to or reduced their stakes in the stock. ABC Arbitrage SA lifted its holdings in Paychex by 61.4% in the third quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after acquiring an additional 10,726 shares during the period. Summit Global Investments increased its holdings in shares of Paychex by 1,938.2% during the 3rd quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock valued at $6,103,000 after purchasing an additional 45,781 shares in the last quarter. Alps Advisors Inc. lifted its stake in shares of Paychex by 20.6% in the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock valued at $30,494,000 after purchasing an additional 41,114 shares during the period. Invesco Ltd. boosted its holdings in Paychex by 6.0% during the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock worth $637,820,000 after buying an additional 249,550 shares in the last quarter. Finally, Arkadios Wealth Advisors boosted its holdings in Paychex by 8.6% during the second quarter. Arkadios Wealth Advisors now owns 53,974 shares of the business services provider’s stock worth $7,851,000 after buying an additional 4,254 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Stock Performance

NASDAQ PAYX opened at $94.38 on Tuesday. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The stock’s 50 day simple moving average is $108.07 and its 200-day simple moving average is $119.76. The company has a market cap of $33.88 billion, a PE ratio of 21.40 and a beta of 0.90. Paychex, Inc. has a 1-year low of $91.70 and a 1-year high of $161.24.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the prior year, the firm earned $1.14 EPS. Paychex’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex declared that its board has approved a stock repurchase program on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Paychex Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on PAYX shares. Stifel Nicolaus cut their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. Wells Fargo & Company reduced their price target on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a report on Tuesday, December 9th. Stephens reduced their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Royal Bank Of Canada dropped their price objective on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a report on Friday, December 5th. Finally, Morgan Stanley cut their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. One 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $123.94.

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.