Bontempo Ohly Capital Mgmt LLC Cuts Holdings in Paychex, Inc. $PAYX

Key Points

• Bontempo Ohly Capital Mgmt LLC has reduced its stake in Paychex, Inc. by 5.9%, now owning 31,474 shares worth approximately $4.86 million, making it the fund's 4th largest holding.
• Paychex recently reported earnings of $1.19 per share, matching analysts' expectations, with a total revenue of $1.43 billion for the quarter, exceeding predictions.
• The company declared a quarterly dividend of $1.08 per share, yielding 3.2%, with a high payout ratio of 94.53% as of the announcement.

Bontempo Ohly Capital Mgmt LLC lessened its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 5.9% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 31,474 shares of the business services provider's stock after selling 1,976 shares during the quarter. Paychex accounts for 2.3% of Bontempo Ohly Capital Mgmt LLC's investment portfolio, making the stock its 4th largest position. Bontempo Ohly Capital Mgmt LLC's holdings in Paychex were worth $4,856,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of PAYX. Select Equity Group L.P. grew its stake in Paychex by 99.0% in 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 purchasing an additional 1,738,372 shares during the period. GAMMA Investing LLC grew its stake in shares of Paychex by 20,236.7% during the 1st quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock worth $177,899,000 after acquiring an additional 1,147,419 shares during the period. Nuveen LLC bought a new position in shares of Paychex during the 1st quarter worth $134,192,000. Charles Schwab Investment Management Inc. grew its stake in shares of 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. Finally, Neuberger Berman Group LLC grew its stake in shares of Paychex by 117.6% during the 1st quarter. Neuberger Berman Group LLC now owns 1,217,092 shares of the business services provider's stock worth $187,512,000 after acquiring an additional 657,871 shares during the period. Institutional investors own 83.47% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on PAYX shares. Jefferies Financial Group set a $140.00 target price on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Barclays set a $155.00 price target on shares of Paychex and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. UBS Group lowered their price target on Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 price target on Paychex and gave the company a "sector perform" rating in a report on Tuesday, June 24th. Finally, Citigroup lowered their price target on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a report on Thursday, August 21st. Ten analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $149.70.

Insider Activity at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total value of $1,755,550.40. Following the sale, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction that occurred 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 completion of the sale, the chairman owned 446,917 shares in the company, valued at approximately $64,878,940.89. This represents a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.80% of the company's stock.

Paychex Price Performance

Shares of NASDAQ PAYX traded down $3.14 during trading hours on Monday, reaching $131.97. 2,194,963 shares of the stock traded hands, compared to its average volume of 2,131,776. The company has a market capitalization of $47.46 billion, a P/E ratio of 28.88, a price-to-earnings-growth ratio of 3.09 and a beta of 0.91. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. Paychex, Inc. has a 52-week low of $131.77 and a 52-week high of $161.24. The company's 50-day simple moving average is $140.44 and its two-hundred day simple moving average is $146.52.

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

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, July 21st were given a $1.08 dividend. The ex-dividend date was Monday, July 21st. This represents a $4.32 annualized dividend and a yield of 3.3%. Paychex's payout ratio is presently 94.53%.

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.