Jensen Investment Management Inc. Reduces Stock Position in Paychex, Inc. $PAYX

Jensen Investment Management Inc. cut its stake in Paychex, Inc. (NASDAQ:PAYX) by 5.2% in the 2nd quarter, Holdings Channel.com reports. The firm owned 9,320 shares of the business services provider’s stock after selling 510 shares during the quarter. Jensen Investment Management Inc.’s holdings in Paychex were worth $1,356,000 as of its most recent filing with the SEC.

Other institutional investors have also added to or reduced their stakes in the company. Select Equity Group L.P. grew its holdings in Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider’s stock valued at $539,102,000 after buying an additional 1,738,372 shares in the last quarter. Nuveen LLC purchased a new position in Paychex during the first quarter valued at approximately $134,192,000. Charles Schwab Investment Management Inc. increased its holdings in Paychex by 7.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider’s stock worth $1,663,474,000 after acquiring an additional 737,542 shares during the period. Neuberger Berman Group LLC boosted its holdings in Paychex by 117.6% in the 1st quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider’s stock valued at $187,512,000 after purchasing an additional 657,871 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in shares of Paychex by 25.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,844,949 shares of the business services provider’s stock valued at $438,919,000 after purchasing an additional 581,410 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on PAYX shares. Jefferies Financial Group set a $130.00 price objective on Paychex in a research note on Tuesday, September 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research report on Thursday. Robert W. Baird decreased their price objective on shares of Paychex from $153.00 to $148.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 1st. UBS Group dropped 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. Finally, Citigroup started coverage on shares of Paychex in a report on Thursday, October 23rd. They issued a “neutral” rating and a $139.00 price target on the stock. Thirteen investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $139.87.

Paychex Trading Up 0.3%

PAYX opened at $112.10 on Friday. The business has a 50 day simple moving average of $124.53 and a two-hundred day simple moving average of $139.09. Paychex, Inc. has a one year low of $109.99 and a one year high of $161.24. The firm has a market capitalization of $40.34 billion, a price-to-earnings ratio of 25.19, a PEG ratio of 2.68 and a beta of 0.93. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.20 by $0.02. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The business had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the previous year, the firm earned $1.16 EPS. The company’s quarterly revenue was up 16.8% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. Analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th will be given a $1.08 dividend. The ex-dividend date of this dividend is Friday, November 7th. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.9%. Paychex’s dividend payout ratio is currently 97.08%.

Paychex Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.