Bahl & Gaynor Inc. Has $221.37 Million Stock Holdings in Paychex, Inc. $PAYX

Bahl & Gaynor Inc. reduced its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 3.2% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,746,330 shares of the business services provider’s stock after selling 57,852 shares during the period. Paychex accounts for 1.1% of Bahl & Gaynor Inc.’s investment portfolio, making the stock its 26th biggest holding. Bahl & Gaynor Inc. owned 0.49% of Paychex worth $221,365,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Heartwood Wealth Advisors LLC acquired a new position in Paychex in the 3rd quarter worth about $25,000. NewSquare Capital LLC grew its stake in shares of Paychex by 83.8% in the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock valued at $31,000 after buying an additional 98 shares in the last quarter. MMA Asset Management LLC acquired a new position in Paychex in the third quarter worth approximately $32,000. GPS Wealth Strategies Group LLC raised its position in Paychex by 40.6% during the second quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock valued at $38,000 after acquiring an additional 76 shares in the last quarter. Finally, Westfuller Advisors LLC bought a new position in Paychex during the third quarter valued at approximately $35,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have commented on PAYX shares. Royal Bank Of Canada decreased their target price on shares of Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research report on Friday, December 5th. Wells Fargo & Company reduced their price objective on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research note on Tuesday, December 9th. Argus decreased their price objective on shares of Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a report on Friday, January 2nd. Wolfe Research cut their target price on Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. Finally, Jefferies Financial Group set a $110.00 price target on Paychex in a research report on Friday, December 19th. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $123.94.

Paychex Stock Performance

Shares of PAYX opened at $93.65 on Monday. The company has a market capitalization of $33.62 billion, a PE ratio of 21.24 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24. The company’s fifty day moving average price is $104.01 and its 200 day moving average price is $116.77.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts expect 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 was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were given a $1.08 dividend. This represents a $4.32 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s payout ratio is currently 97.96%.

Paychex announced that its board has authorized a stock repurchase plan on Friday, January 16th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.