Paychex, Inc. (NASDAQ:PAYX) Shares Purchased by Citigroup Inc.

Key Points

• Citigroup Inc. increased its holdings in Paychex, Inc. by 24.4%, now owning 642,006 shares worth approximately $99.05 million.
• Paychex recently announced a quarterly dividend of $1.08 per share, translating to an annual yield of 3.1% for shareholders.
• Research analysts have mixed views on Paychex, with an average target price of $150.20 and a consensus rating of "Hold".

Citigroup Inc. increased its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 24.4% in the first quarter, according to its most recent filing with the SEC. The fund owned 642,006 shares of the business services provider's stock after acquiring an additional 125,866 shares during the period. Citigroup Inc. owned about 0.18% of Paychex worth $99,049,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Robeco Institutional Asset Management B.V. raised its position in shares of Paychex by 118.5% in the 1st quarter. Robeco Institutional Asset Management B.V. now owns 136,876 shares of the business services provider's stock worth $21,117,000 after acquiring an additional 74,245 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its position in shares of Paychex by 32.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 119,291 shares of the business services provider's stock worth $18,404,000 after acquiring an additional 29,320 shares in the last quarter. MWA Asset Management raised its position in shares of Paychex by 6.5% in the 1st quarter. MWA Asset Management now owns 4,269 shares of the business services provider's stock worth $659,000 after acquiring an additional 262 shares in the last quarter. Fifth Third Wealth Advisors LLC grew its stake in Paychex by 15.1% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 6,419 shares of the business services provider's stock worth $990,000 after buying an additional 843 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. grew its stake in Paychex by 7.1% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 7,607 shares of the business services provider's stock worth $1,174,000 after buying an additional 502 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Insider Buying and Selling

In other Paychex news, CEO John B. Gibson sold 12,370 shares of the 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 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $145.17, for a total value of $14,157,849.42. Following the transaction, the chairman directly owned 446,917 shares of the company's stock, valued at $64,878,940.89. The trade was 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

Shares of PAYX traded down $3.61 during mid-day trading on Tuesday, reaching $134.99. The company had a trading volume of 3,123,390 shares, compared to its average volume of 2,158,050. Paychex, Inc. has a 52-week low of $123.35 and a 52-week high of $161.24. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. The stock has a market capitalization of $48.63 billion, a P/E ratio of 29.54, a PEG ratio of 3.23 and a beta of 0.91. The stock has a 50 day moving average of $147.04 and a two-hundred day moving average of $148.40.

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

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, July 21st will be given a dividend of $1.08 per share. The ex-dividend date is Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a yield of 3.2%. Paychex's dividend payout ratio is currently 94.53%.

Wall Street Analyst Weigh In

PAYX has been the topic of several research analyst reports. Jefferies Financial Group set a $140.00 target price on 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 Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. Morgan Stanley dropped their target price on Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research note on Friday, June 27th. BMO Capital Markets initiated coverage on Paychex in a research note on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Finally, UBS Group dropped their target price on Paychex from $155.00 to $145.00 and set a "neutral" rating on the stock in a research note on Thursday, June 26th. One research analyst has rated the stock with a sell rating and ten have assigned a hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $150.20.

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.