Neuberger Berman Group LLC Has $144.86 Million Stake in Paychex, Inc. $PAYX

Neuberger Berman Group LLC reduced its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 9.6% during the 3rd quarter, HoldingsChannel.com reports. The fund owned 1,142,296 shares of the business services provider’s stock after selling 121,986 shares during the quarter. Neuberger Berman Group LLC’s holdings in Paychex were worth $144,858,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently added to or reduced their stakes in PAYX. Heartwood Wealth Advisors LLC bought a new position in shares of Paychex in the 3rd quarter valued at about $25,000. NewSquare Capital LLC raised its holdings in shares of Paychex by 83.8% in the 2nd 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. MMA Asset Management LLC bought a new stake in shares of Paychex in the 3rd quarter valued at about $32,000. GPS Wealth Strategies Group LLC lifted its stake in Paychex by 40.6% in the 2nd quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after purchasing an additional 76 shares during the last quarter. Finally, Westfuller Advisors LLC acquired a new stake in Paychex in the 3rd quarter valued at about $35,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Jefferies Financial Group set a $110.00 price target on Paychex in a report on Friday, December 19th. Argus dropped their price objective on Paychex from $150.00 to $130.00 and set a “buy” rating on the stock in a research note on Friday, January 2nd. Stephens cut their price objective on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research report on Monday, December 22nd. Citigroup reduced their target price on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a research note on Monday, December 22nd. Finally, JPMorgan Chase & Co. decreased their target price on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. 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 company. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $123.94.

Paychex Stock Performance

NASDAQ PAYX opened at $100.85 on Friday. The firm has a 50-day moving average price of $102.25 and a two-hundred day moving average price of $115.65. Paychex, Inc. has a 12-month low of $86.89 and a 12-month high of $161.24. The company has a market capitalization of $36.20 billion, a P/E ratio of 22.87 and a beta of 0.91. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1.55 billion. During the same period last year, the firm earned $1.14 earnings per share. The business’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. Analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio (DPR) is 97.96%.

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

Paychex 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.