First National Bank of Omaha Makes New Investment in Paychex, Inc. $PAYX

First National Bank of Omaha purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 21,415 shares of the business services provider’s stock, valued at approximately $2,715,000.

Other large investors also recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in Paychex by 17.2% during the 3rd quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock worth $4,787,151,000 after purchasing an additional 5,549,511 shares during the last quarter. State Street Corp increased its position in shares of Paychex by 2.6% during the second 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 during the period. Charles Schwab Investment Management Inc. raised its stake 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 worth $1,604,906,000 after buying an additional 251,139 shares during the last quarter. Geode Capital Management LLC raised its stake in Paychex by 2.8% during the second quarter. Geode Capital Management LLC now owns 10,183,871 shares of the business services provider’s stock worth $1,481,053,000 after buying an additional 274,947 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in Paychex by 6.0% in the second quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after buying an additional 249,550 shares during the period. 83.47% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on PAYX shares. BMO Capital Markets decreased their price target on Paychex from $140.00 to $121.00 and set a “market perform” rating for the company in a report on Tuesday, December 9th. Stephens cut their target price on 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 lowered their target price on Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a report on Monday, December 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Finally, Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Paychex presently has an average rating of “Reduce” and a consensus target price of $123.94.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $94.29 on Thursday. Paychex, Inc. has a twelve month low of $91.70 and a twelve month high of $161.24. The stock’s 50 day moving average is $107.31 and its 200-day moving average is $119.26. 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 capitalization of $33.85 billion, a price-to-earnings ratio of 21.38 and a beta of 0.90.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.03. The business had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Sell-side analysts forecast that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

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

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

About Paychex

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.