Paychex, Inc. (NASDAQ:PAYX) Shares Sold by Bank of Nova Scotia

Key Points

• The Bank of Nova Scotia reduced its holdings in Paychex, Inc. by 21.5%, ending the first quarter with 35,636 shares valued at approximately $5.5 million.
• Institutional ownership of Paychex is significant, with 83.47% of the stock held by hedge funds and other investors, showcasing strong institutional interest.
• Paychex has announced a quarterly dividend of $1.08 per share, with a payout ratio of 94.53%, reflecting its commitment to returning value to shareholders.

Bank of Nova Scotia lowered its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 21.5% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 35,636 shares of the business services provider's stock after selling 9,774 shares during the quarter. Bank of Nova Scotia's holdings in Paychex were worth $5,498,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the business. GAMMA Investing LLC boosted its stake in Paychex by 20,236.7% in the first quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock valued at $177,899,000 after acquiring an additional 1,147,419 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Paychex by 16.9% during the 4th quarter. Northern Trust Corp now owns 4,807,554 shares of the business services provider's stock valued at $674,115,000 after purchasing an additional 694,651 shares during the last quarter. Capital Research Global Investors boosted its position in shares of Paychex by 43.5% in the 4th quarter. Capital Research Global Investors now owns 1,519,430 shares of the business services provider's stock worth $213,054,000 after purchasing an additional 460,295 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Paychex by 14.7% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,130,781 shares of the business services provider's stock worth $438,998,000 after acquiring an additional 401,552 shares in the last quarter. Finally, Leigh Baldwin & CO. LLC purchased a new stake in shares of Paychex during the fourth quarter worth about $47,203,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Insider Activity at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction dated 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 sale, the chief executive officer owned 81,755 shares of the company's stock, valued at $11,602,669.60. The trade was a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction dated 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. This trade represents a 17.91% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 11.40% of the company's stock.

Paychex Stock Performance

NASDAQ PAYX traded up $1.44 on Thursday, reaching $140.52. 1,885,117 shares of the company's stock traded hands, compared to its average volume of 2,073,937. Paychex, Inc. has a fifty-two week low of $122.07 and a fifty-two week high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market cap of $50.62 billion, a price-to-earnings ratio of 30.75, a P/E/G ratio of 3.19 and a beta of 0.91. The stock has a 50 day moving average price of $147.75 and a 200-day moving average price of $148.43.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, hitting the consensus estimate of $1.19. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%. During the same quarter in the prior year, the firm posted $1.12 EPS. 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 paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Monday, July 21st. Paychex's dividend payout ratio is presently 94.53%.

Wall Street Analyst Weigh In

PAYX has been the subject of several research analyst reports. Stifel Nicolaus decreased their price objective on shares of Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research report on Thursday, June 26th. JPMorgan Chase & Co. raised their price target on shares of Paychex from $140.00 to $148.00 and gave the stock an "underweight" rating in a report on Wednesday, June 18th. Jefferies Financial Group set a $140.00 price objective on shares of Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Barclays set a $155.00 target price on Paychex and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. Finally, UBS Group lowered their price target on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research report on Thursday, June 26th. One analyst has rated the stock with a sell rating and ten have assigned a hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $150.20.

Paychex Company 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.