Bahl & Gaynor Inc. Has $270.83 Million Stock Position in Paychex, Inc. $PAYX

Key Points

• Bahl & Gaynor Inc. increased its stake in Paychex, Inc. by 4.8%, now holding 1,755,442 shares worth approximately $270.83 million, making it the 25th largest holding in their portfolio.
• Paychex recently announced a quarterly dividend of $1.08 per share, reflecting an annualized dividend yield of 3.1% and a payout ratio of 94.53%.
• Wall Street analysts have downgraded Paychex's target prices, with current consensus rating at "Reduce" and an average target price of $149.70 amidst more cautious market outlooks.

Bahl & Gaynor Inc. grew its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 4.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,755,442 shares of the business services provider's stock after purchasing an additional 80,138 shares during the quarter. Paychex accounts for about 1.4% of Bahl & Gaynor Inc.'s holdings, making the stock its 25th biggest holding. Bahl & Gaynor Inc. owned about 0.49% of Paychex worth $270,830,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of PAYX. MorganRosel Wealth Management LLC acquired a new position in Paychex during the 1st quarter worth approximately $34,000. Alpine Bank Wealth Management acquired a new position in shares of Paychex in the 1st quarter valued at $34,000. Tsfg LLC increased its position in Paychex by 122.3% in the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after acquiring an additional 126 shares during the period. HWG Holdings LP purchased a new stake in shares of Paychex during the first quarter worth approximately $46,000. Finally, Olde Wealth Management LLC acquired a new stake in shares of Paychex in the 1st quarter worth $59,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Performance

Shares of PAYX traded up $0.08 during midday trading on Thursday, hitting $138.73. 586,329 shares of the stock traded hands, compared to its average volume of 2,147,292. The business's 50 day moving average price is $142.90 and its two-hundred day moving average price is $147.56. Paychex, Inc. has a 1-year low of $128.92 and a 1-year high of $161.24. The firm has a market capitalization of $49.98 billion, a PE ratio of 30.33, a price-to-earnings-growth ratio of 3.16 and a beta of 0.91. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.19. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%.During the same period in the previous year, the firm posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. Equities research analysts predict that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Monday, July 21st will be paid a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Monday, July 21st. Paychex's dividend payout ratio is currently 94.53%.

Analyst Upgrades and Downgrades

PAYX has been the topic of a number of analyst reports. Morgan Stanley decreased their price target on Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research note on Friday, June 27th. Barclays set a $155.00 target price on Paychex and gave the company an "equal weight" rating in a report on Tuesday, June 24th. Citigroup reduced their price target on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Royal Bank Of Canada set a $165.00 price target on Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. Finally, Stifel Nicolaus lowered their target price on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research note on Thursday, June 26th. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Paychex has an average rating of "Reduce" and a consensus price target of $149.70.

Insiders Place Their Bets

In other Paychex news, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total value of $14,157,849.42. Following the transaction, the chairman owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This represents a 17.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO John B. Gibson sold 12,370 shares of the stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the transaction, the chief executive officer owned 81,755 shares of the company's stock, valued at $11,602,669.60. This trade represents a 13.14% decrease in their position. The disclosure for this sale can be found here. Company insiders own 11.40% of the company's stock.

About Paychex

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.