Post Resch Tallon Group Inc. Cuts Position in Paychex, Inc. $PAYX

Key Points

• Post Resch Tallon Group Inc. reduced its holdings in Paychex, Inc. by 26.8%, owning 5,469 shares worth approximately $796,000 after selling 1,998 shares in the second quarter.
• Paychex recently announced a quarterly dividend of $1.08, translating to an annualized amount of $4.32 and a yield of 3.3%, with a payout ratio of 94.53%.
• Despite the reduction in shareholdings by some investors, multiple hedge funds have increased their stakes in Paychex, with institutional investors owning 83.47% of the company's stock.

Post Resch Tallon Group Inc. trimmed its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 26.8% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 5,469 shares of the business services provider's stock after selling 1,998 shares during the period. Post Resch Tallon Group Inc.'s holdings in Paychex were worth $796,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Balefire LLC purchased a new stake in shares of Paychex in the 2nd quarter valued at approximately $269,000. Berkshire Bank raised its stake in shares of Paychex by 6.7% in the 2nd quarter. Berkshire Bank now owns 3,703 shares of the business services provider's stock valued at $539,000 after acquiring an additional 232 shares during the period. Czech National Bank raised its stake in shares of Paychex by 6.5% in the 2nd quarter. Czech National Bank now owns 78,358 shares of the business services provider's stock valued at $11,398,000 after acquiring an additional 4,755 shares during the period. Range Financial Group LLC increased its stake in Paychex by 5.3% during the 2nd quarter. Range Financial Group LLC now owns 6,512 shares of the business services provider's stock worth $947,000 after buying an additional 325 shares during the period. Finally, Everpar Advisors LLC purchased a new stake in Paychex during the 2nd quarter worth approximately $239,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Stock Performance

NASDAQ:PAYX traded down $1.35 during trading hours on Thursday, reaching $131.11. 3,656,217 shares of the company's stock were exchanged, compared to its average volume of 1,938,796. The firm has a market capitalization of $47.15 billion, a price-to-earnings ratio of 28.69, a P/E/G ratio of 3.03 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 1-year low of $130.24 and a 1-year high of $161.24. The company has a 50-day moving average of $139.34 and a 200 day moving average of $146.03.

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

Paychex Dividend Announcement

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

Analyst Ratings Changes

Several brokerages recently weighed in on PAYX. BMO Capital Markets began coverage on shares of Paychex in a research note on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Citigroup cut their target price on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Jefferies Financial Group set a $140.00 target price on shares of Paychex and gave the stock a "hold" rating in a research note on Thursday, June 26th. Royal Bank Of Canada set a $165.00 target price on shares of Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. Finally, JPMorgan Chase & Co. upped their target price on shares of Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a research note on Thursday, August 14th. Ten research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $149.20.

Insiders Place Their Bets

In other Paychex news, CEO John B. Gibson sold 12,370 shares of the company's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the completion of the transaction, 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 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 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 transaction 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. The trade was a 17.91% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by corporate insiders.

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.