Confluence Investment Management LLC Reduces Position in Paychex, Inc. $PAYX

Key Points

• Confluence Investment Management LLC reduced its stake in Paychex by 2.0%, now holding approximately 1,044,626 shares valued at around $151.9 million.
• Several large investors modified their positions in Paychex, with notable increases from Swedbank AB and Modern Wealth Management LLC.
• Analysts lowered their price targets for Paychex, with Citigroup and Morgan Stanley both setting a target of $148.00 while maintaining a "neutral" or "equal weight" rating.

Confluence Investment Management LLC cut its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 2.0% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,044,626 shares of the business services provider's stock after selling 20,832 shares during the quarter. Paychex comprises approximately 2.1% of Confluence Investment Management LLC's portfolio, making the stock its 4th biggest position. Confluence Investment Management LLC owned approximately 0.29% of Paychex worth $151,951,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently modified their holdings of the stock. AG2R LA Mondiale Gestion D Actifs bought a new position in Paychex in the 1st quarter worth about $2,000,000. Swedbank AB raised its holdings in Paychex by 1.7% in the first quarter. Swedbank AB now owns 159,590 shares of the business services provider's stock worth $24,622,000 after buying an additional 2,721 shares during the last quarter. Ridgepath Capital Management LLC lifted its stake in shares of Paychex by 0.6% in the first quarter. Ridgepath Capital Management LLC now owns 38,111 shares of the business services provider's stock worth $5,880,000 after buying an additional 241 shares in the last quarter. eCIO Inc. bought a new position in shares of Paychex in the first quarter worth approximately $124,000. Finally, Modern Wealth Management LLC grew its holdings in shares of Paychex by 28.7% during the first quarter. Modern Wealth Management LLC now owns 13,814 shares of the business services provider's stock valued at $2,131,000 after buying an additional 3,079 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently weighed in on PAYX shares. Citigroup decreased their price objective on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. Morgan Stanley reduced their target price on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a report on Friday, June 27th. UBS Group decreased their price target on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research note on Thursday, June 26th. BMO Capital Markets began coverage on Paychex in a research report on Thursday, July 10th. They set a "market perform" rating and a $160.00 price objective on the stock. Finally, Barclays set a $155.00 price objective on Paychex and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. Ten investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Paychex currently has a consensus rating of "Reduce" and a consensus price target of $149.70.

Insiders Place Their Bets

In related news, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on Thursday, July 10th. The stock was 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 approximately $64,878,940.89. This trade represents a 17.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 value of $1,755,550.40. Following the sale, the chief executive officer directly owned 81,755 shares of the company's stock, valued at $11,602,669.60. This represents a 13.14% decrease in their position. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by company insiders.

Paychex Trading Down 0.3%

Shares of NASDAQ:PAYX opened at $135.11 on Friday. Paychex, Inc. has a 52-week low of $131.83 and a 52-week high of $161.24. The stock has a market capitalization of $48.59 billion, a price-to-earnings ratio of 29.56, a PEG ratio of 3.10 and a beta of 0.91. 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 stock's 50-day simple moving average is $140.44 and its two-hundred day simple moving average is $146.55.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 earnings per share for the quarter, hitting the consensus estimate 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 quarter in the prior year, the business earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. Analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

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

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.

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