Erste Asset Management GmbH Sells 5,500 Shares of Paychex, Inc. $PAYX

Key Points

• Erste Asset Management GmbH reduced its stake in Paychex, Inc. by 10.7%, selling 5,500 shares, and now holds 45,800 shares valued at $6,917,000.
• The CEO and Chairman of Paychex significantly decreased their ownership stakes, with the CEO selling 12,370 shares and the Chairman selling 97,526 shares in July.
• Paychex recently announced a quarterly dividend of $1.08 per share, which reflects a 3.1% annual yield and a payout ratio of 94.53%.

Erste Asset Management GmbH trimmed its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 10.7% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 45,800 shares of the business services provider's stock after selling 5,500 shares during the quarter. Erste Asset Management GmbH's holdings in Paychex were worth $6,917,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also added to or reduced their stakes in the business. Summit Wealth Partners LLC increased its holdings in Paychex by 2.4% in the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock worth $467,000 after purchasing an additional 70 shares in the last quarter. LGT Group Foundation increased its holdings in Paychex by 2.8% in the first quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock worth $390,000 after purchasing an additional 70 shares in the last quarter. Golden State Equity Partners increased its holdings in Paychex by 0.9% in the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after purchasing an additional 71 shares in the last quarter. Palumbo Wealth Management LLC increased its holdings in Paychex by 2.4% in the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after purchasing an additional 74 shares in the last quarter. Finally, King Wealth Management Group increased its holdings in Paychex by 4.7% in the first quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock worth $257,000 after purchasing an additional 75 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Paychex

In related news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the completion of the sale, the chief executive officer owned 81,755 shares in the company, valued at approximately $11,602,669.60. This represents a 13.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, 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 sale, the chairman owned 446,917 shares of the company's stock, valued at $64,878,940.89. This trade represents a 17.91% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 11.40% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Barclays set a $155.00 target price on Paychex and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. Morgan Stanley lowered their target price on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a report on Friday, June 27th. Stifel Nicolaus decreased their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. BMO Capital Markets started coverage on Paychex in a research report on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Finally, Citigroup set a $158.00 target price on Paychex and gave the stock a "neutral" rating in a research report on Tuesday, June 24th. Ten research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $150.70.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $138.88 on Thursday. 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 twelve month low of $125.45 and a twelve month high of $161.24. The stock's 50 day moving average is $144.28 and its 200-day moving average is $147.91. The firm has a market capitalization of $50.03 billion, a price-to-earnings ratio of 30.39, a PEG ratio of 3.18 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results 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. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the company posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. Sell-side analysts forecast that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

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

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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