ING Groep NV Invests $14.75 Million in Paychex, Inc. $PAYX

ING Groep NV bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 116,385 shares of the business services provider’s stock, valued at approximately $14,753,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Norges Bank bought a new position in Paychex during the 2nd quarter worth approximately $302,244,000. Marshall Wace LLP increased its position in Paychex by 179.5% in the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock worth $156,854,000 after buying an additional 692,533 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in Paychex by 29.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,542,901 shares of the business services provider’s stock valued at $369,901,000 after acquiring an additional 574,337 shares during the period. Assenagon Asset Management S.A. lifted its holdings in shares of Paychex by 209.1% in the third quarter. Assenagon Asset Management S.A. now owns 838,679 shares of the business services provider’s stock worth $106,311,000 after buying an additional 567,352 shares in the last quarter. Finally, Select Equity Group L.P. increased its stake in Paychex by 15.9% in the 2nd quarter. Select Equity Group L.P. now owns 4,051,413 shares of the business services provider’s stock worth $589,319,000 after acquiring an additional 557,101 shares during the last quarter. Institutional investors own 83.47% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Cantor Fitzgerald raised shares of Paychex to a “strong sell” rating in a research note on Tuesday, January 27th. Citigroup cut their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. Stifel Nicolaus decreased their target price on Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research note on Wednesday, December 17th. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research note on Monday, December 29th. Finally, Wolfe Research reduced their target price on Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a research note on Wednesday, December 10th. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $123.94.

Paychex Trading Down 4.2%

Shares of Paychex stock opened at $94.84 on Thursday. The stock has a market cap of $34.04 billion, a PE ratio of 21.51 and a beta of 0.90. The firm has a fifty day moving average price of $109.17 and a 200 day moving average price of $121.04. Paychex, Inc. has a 1 year low of $94.08 and a 1 year high of $161.24. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

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

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

Paychex Announces Dividend

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

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.