Paychex, Inc. $PAYX Shares Sold by American Century Companies Inc.

Key Points

• American Century Companies Inc. reduced its stake in Paychex, Inc. by 7.0%, selling 7,734 shares in the 1st quarter, leaving them with a total of 103,119 shares valued at approximately $15.9 million.
• Paychex recently announced a quarterly dividend of $1.08 per share, with an annualized yield of 3.1%, reflecting a dividend payout ratio of 94.53%.
• Analysts have set a consensus price target of $149.70 for Paychex, with ten analysts rating it as a "Hold" and one as a "Sell."

American Century Companies Inc. trimmed its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 7.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 103,119 shares of the business services provider's stock after selling 7,734 shares during the period. American Century Companies Inc.'s holdings in Paychex were worth $15,909,000 as of its most recent filing with the Securities & Exchange Commission.

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

Paychex Price Performance

PAYX stock traded up $0.07 during trading on Thursday, reaching $138.72. 1,681,427 shares of the company were exchanged, compared to its average volume of 2,154,248. The company has a market cap of $49.97 billion, a P/E ratio of 30.35, a PEG ratio of 3.16 and a beta of 0.91. Paychex, Inc. has a 52-week low of $128.92 and a 52-week high of $161.24. The stock's 50 day moving average price is $142.90 and its 200 day moving average price is $147.56. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, meeting analysts' consensus estimates of $1.19. The firm 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 period in the prior year, the company earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. As a group, analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

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

Insider Transactions at Paychex

In other Paychex news, Chairman Martin Mucci sold 97,526 shares of the firm's 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 sale, the chairman directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction that occurred 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 directly owned 81,755 shares in the company, valued at $11,602,669.60. This represents a 13.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.40% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have commented on PAYX. UBS Group dropped their price objective on shares of Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a research report on Thursday, June 26th. 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 report on Thursday, August 21st. Jefferies Financial Group set a $140.00 price objective on shares of Paychex and gave the company a "hold" rating in a research note on Thursday, June 26th. Royal Bank Of Canada set a $165.00 price objective on shares of Paychex and gave the company a "sector perform" rating in a research note on Tuesday, June 24th. Finally, Stifel Nicolaus dropped their price objective on shares of Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a research note on Thursday, June 26th. Ten analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $149.70.

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.