Kepler Cheuvreux Suisse SA Invests $12.79 Million in Paychex, Inc. $PAYX

Kepler Cheuvreux Suisse SA bought a new stake in Paychex, Inc. (NASDAQ:PAYX) in the 3rd quarter, according to its most recent filing with the SEC. The fund bought 100,857 shares of the business services provider’s stock, valued at approximately $12,785,000.

A number of other hedge funds have also recently added to or reduced their stakes in PAYX. Brighton Jones LLC boosted its stake in shares of Paychex by 26.3% during the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares in the last quarter. Bison Wealth LLC increased its stake in shares of Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after purchasing an additional 117 shares in the last quarter. Woodline Partners LP acquired a new position in Paychex in the 1st quarter worth about $3,333,000. Savant Capital LLC boosted its position in Paychex by 3.2% during the second quarter. Savant Capital LLC now owns 10,054 shares of the business services provider’s stock worth $1,462,000 after purchasing an additional 314 shares in the last quarter. Finally, AGF Management Ltd. grew its holdings in Paychex by 7.5% in the second quarter. AGF Management Ltd. now owns 19,308 shares of the business services provider’s stock valued at $2,809,000 after purchasing an additional 1,347 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Stock Down 3.2%

Shares of PAYX opened at $95.12 on Wednesday. The stock has a 50 day moving average price of $101.57 and a 200 day moving average price of $114.71. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24. 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 market capitalization of $34.15 billion, a price-to-earnings ratio of 21.57 and a beta of 0.91.

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 analysts’ consensus estimates of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same quarter last year, the firm posted $1.14 EPS. The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. Equities research analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

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

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a dividend of $1.08 per share. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 dividend on an annualized basis and a yield of 4.5%. Paychex’s payout ratio is presently 97.96%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on PAYX. Stephens reduced their target price on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Wells Fargo & Company cut their price target on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a report on Tuesday, December 9th. Morgan Stanley reduced their price objective on shares of Paychex from $133.00 to $123.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Finally, Royal Bank Of Canada dropped their target price on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a research report on Friday, December 5th. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $123.94.

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.