Callahan Advisors LLC Trims Holdings in Paychex, Inc. $PAYX

Key Points

• Callahan Advisors LLC reduced its stake in Paychex, Inc. by 2.6%, owning 74,418 shares worth approximately $10.8 million after selling 1,968 shares in the latest quarter.
• Paychex reported a quarterly EPS of $1.22, exceeding the consensus estimate, with a year-over-year revenue increase of 16.8%.
• The company declared a quarterly dividend of $1.08, representing an annualized dividend yield of 3.4%, to be paid on November 26th.

Callahan Advisors LLC cut its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 2.6% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 74,418 shares of the business services provider's stock after selling 1,968 shares during the quarter. Callahan Advisors LLC's holdings in Paychex were worth $10,825,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. MorganRosel Wealth Management LLC purchased a new position in Paychex during the first quarter worth about $34,000. Quarry LP acquired a new stake in shares of Paychex during the 1st quarter worth approximately $34,000. Alpine Bank Wealth Management purchased a new stake in shares of Paychex during the 1st quarter valued at approximately $34,000. Tsfg LLC lifted its holdings in Paychex by 122.3% in the first 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 last quarter. Finally, Nova Wealth Management Inc. purchased a new position in Paychex in the first quarter worth approximately $38,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Analyst Upgrades and Downgrades

PAYX has been the subject of several recent analyst reports. Argus cut their target price on Paychex from $170.00 to $150.00 in a research note on Thursday, October 2nd. Wolfe Research cut their price objective on Paychex from $145.00 to $140.00 and set an "underperform" rating for the company in a research report on Friday, September 26th. Morgan Stanley decreased their target price on shares of Paychex from $148.00 to $132.00 and set an "equal weight" rating on the stock in a research report on Wednesday, October 1st. Barclays set a $155.00 target price on shares of Paychex and gave the stock an "equal weight" rating in a research note on Tuesday, June 24th. Finally, Robert W. Baird reduced their price target on shares of Paychex from $153.00 to $148.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 1st. One analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Paychex has a consensus rating of "Reduce" and a consensus price target of $141.29.

Paychex Stock Performance

Shares of Paychex stock opened at $127.52 on Thursday. The stock has a market capitalization of $45.89 billion, a price-to-earnings ratio of 28.66, a price-to-earnings-growth ratio of 2.94 and a beta of 0.92. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.27 and a quick ratio of 1.27. The business has a 50-day moving average of $133.09 and a 200 day moving average of $143.25. Paychex, Inc. has a 12 month low of $119.02 and a 12 month high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.02. The business had revenue of $1.54 billion for the quarter, compared to analysts' expectations of $1.54 billion. Paychex had a net margin of 27.85% and a return on equity of 45.17%. The business's quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.16 earnings per share. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, sell-side analysts forecast that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th will be paid a $1.08 dividend. The ex-dividend date is Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 3.4%. Paychex's payout ratio is 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.

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