Alliancebernstein L.P. Decreases Stock Position in Paychex, Inc. $PAYX

Key Points

• Alliancebernstein L.P. has reduced its holdings in Paychex, Inc. by 15.1% in the first quarter, now owning approximately 0.13% of the company, valued at about $72 million.
• Paychex's recent quarterly earnings met expectations with $1.19 earnings per share, and the company reported revenue of $1.43 billion, exceeding analysts' forecasts.
• Paychex declared a quarterly dividend of $1.08 per share, providing an annualized dividend yield of 3.2%, with a current dividend payout ratio of 94.53%.

Alliancebernstein L.P. lowered its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 15.1% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 469,476 shares of the business services provider's stock after selling 83,621 shares during the period. Alliancebernstein L.P. owned approximately 0.13% of Paychex worth $72,431,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in PAYX. Alpine Bank Wealth Management acquired a new stake in shares of Paychex during the 1st quarter worth approximately $34,000. MorganRosel Wealth Management LLC bought a new position in Paychex during the first quarter worth $34,000. Quarry LP acquired a new stake in Paychex in the first quarter worth $34,000. Tsfg LLC increased its stake 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 purchasing an additional 126 shares in the last quarter. Finally, HWG Holdings LP acquired a new position in shares of Paychex during the first quarter valued at about $46,000. 83.47% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, Chairman Martin Mucci sold 97,526 shares of the stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $145.17, for a total transaction of $14,157,849.42. Following the completion of the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction dated 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 directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This represents a 13.14% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several analysts have recently commented on PAYX shares. Citigroup reduced their target price on Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a research note on Thursday, August 21st. Barclays set a $155.00 price objective on Paychex and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. Jefferies Financial Group set a $140.00 price objective on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 target price on Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research note on Thursday, August 14th. Ten analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $149.70.

Paychex Stock Down 0.3%

Paychex stock traded down $0.35 during midday trading on Friday, hitting $135.11. 1,305,369 shares of the stock were exchanged, compared to its average volume of 1,876,443. Paychex, Inc. has a 52-week low of $131.83 and a 52-week high of $161.24. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. The business's 50-day moving average price is $140.44 and its 200-day moving average price is $146.55. The stock has a market capitalization of $48.59 billion, a price-to-earnings ratio of 29.56, a price-to-earnings-growth ratio of 3.10 and a beta of 0.91.

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

Paychex Announces Dividend

The firm 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 of this dividend was Monday, July 21st. This represents a $4.32 annualized dividend and a yield of 3.2%. Paychex's payout ratio is currently 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.