Nuveen LLC Takes $134.19 Million Position in Paychex, Inc. (NASDAQ:PAYX)

Key Points

• Nuveen LLC acquired 869,796 shares of Paychex, Inc. for approximately $134 million, representing about 0.24% of the company's stock at the end of the most recent reporting period.
• Paychex announced its quarterly earnings with a reported EPS of $1.19, meeting the consensus estimate, and revenue of $1.43 billion, exceeding analyst expectations.
• The company recently declared a quarterly dividend of $1.08 per share, resulting in an annualized yield of 3.1%, with a payout ratio of 94.53%.

Nuveen LLC bought a new stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 869,796 shares of the business services provider's stock, valued at approximately $134,192,000. Nuveen LLC owned approximately 0.24% of Paychex at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. MorganRosel Wealth Management LLC purchased a new position in shares of Paychex during the first quarter worth approximately $34,000. Alpine Bank Wealth Management purchased a new position in Paychex in the 1st quarter worth $34,000. Tsfg LLC raised its position in Paychex by 122.3% in the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock worth $35,000 after purchasing an additional 126 shares during the period. HWG Holdings LP purchased a new position in Paychex in the 1st quarter worth $46,000. Finally, Transce3nd LLC purchased a new position in Paychex in the 4th quarter worth $44,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Trading Down 0.8%

NASDAQ:PAYX traded down $1.12 during trading hours on Thursday, hitting $137.49. The company had a trading volume of 1,425,034 shares, compared to its average volume of 2,156,059. The company has a market capitalization of $49.53 billion, a PE ratio of 30.09, a price-to-earnings-growth ratio of 3.09 and a beta of 0.91. The stock has a 50-day moving average price of $146.16 and a 200 day moving average price of $148.24. Paychex, Inc. has a 52 week low of $124.64 and a 52 week high of $161.24. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.28 and a quick ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share for the quarter, meeting the consensus estimate of $1.19. The business had revenue of $1.43 billion for the quarter, compared to analysts' expectations 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 previous year, the business posted $1.12 earnings per share. On average, equities research analysts predict that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on PAYX shares. Jefferies Financial Group set a $140.00 target price on shares of Paychex and gave the stock a "hold" rating in a research report on Thursday, June 26th. BMO Capital Markets assumed coverage on shares of Paychex in a report on Thursday, July 10th. They issued a "market perform" rating and a $160.00 target price on the stock. Stifel Nicolaus lowered their price target on shares of Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. JPMorgan Chase & Co. increased their price target on shares of Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research report on Thursday. Finally, Barclays set a $155.00 price target on shares of Paychex and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. One research analyst has rated the stock with a sell rating and ten have issued a hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $150.70.

Insiders Place Their Bets

In other news, CEO John B. Gibson sold 12,370 shares of the business'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 sale, the chief executive officer owned 81,755 shares in the company, valued at approximately $11,602,669.60. The trade was a 13.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction on 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 sale, the chairman owned 446,917 shares in the company, valued at approximately $64,878,940.89. This trade represents a 17.91% decrease in their position. The disclosure for this sale can be found here. Insiders own 11.40% of the company's stock.

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.