Goldman Sachs Group Inc. Acquires 581,410 Shares of Paychex, Inc. (NASDAQ:PAYX)

Key Points

• Goldman Sachs Group Inc. has increased its stake in Paychex, Inc. by 25.7%, acquiring an additional 581,410 shares to hold a total of approximately 2.84 million shares worth $438.9 million.
• Various institutional investors are actively modifying their holdings, contributing to a total institutional ownership of 83.47% of Paychex's stock.
• Paychex recently reported earnings of $1.19 EPS and announced a quarterly dividend of $1.08, representing a yield of 3.1%.

Goldman Sachs Group Inc. grew its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 25.7% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 2,844,949 shares of the business services provider's stock after purchasing an additional 581,410 shares during the quarter. Goldman Sachs Group Inc. owned about 0.79% of Paychex worth $438,919,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. MorganRosel Wealth Management LLC acquired a new stake in Paychex during the 1st quarter worth $34,000. Alpine Bank Wealth Management acquired a new stake in Paychex during the 1st quarter worth $34,000. Tsfg LLC raised its stake in Paychex by 122.3% during the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock worth $35,000 after buying an additional 126 shares during the period. HWG Holdings LP acquired a new stake in Paychex during the 1st quarter worth $46,000. Finally, Transce3nd LLC acquired a new stake in Paychex during the 4th quarter worth $44,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Activity

In other news, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the transaction, the chief executive officer owned 81,755 shares in the company, valued at $11,602,669.60. This trade represents a 13.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction dated 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 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. 11.40% of the stock is owned by company insiders.

Paychex Stock Up 0.5%

Shares of NASDAQ PAYX traded up $0.67 during mid-day trading on Friday, hitting $141.19. The company had a trading volume of 1,367,957 shares, compared to its average volume of 2,028,548. The company has a market capitalization of $50.86 billion, a PE ratio of 30.90, a price-to-earnings-growth ratio of 3.23 and a beta of 0.91. The firm has a 50-day simple moving average of $147.42 and a two-hundred day simple moving average of $148.42. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. Paychex, Inc. has a one year low of $123.00 and a one year high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%. During the same quarter last year, the company earned $1.12 EPS. On average, equities analysts expect that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

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

Wall Street Analyst Weigh In

Several analysts recently commented on PAYX shares. Morgan Stanley dropped their price objective 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. Stifel Nicolaus lowered their target price on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. UBS Group lowered their target price on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a report on Thursday, June 26th. Barclays set a $155.00 target price on Paychex and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. Finally, BMO Capital Markets initiated coverage on Paychex in a report on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price for the company. One investment analyst has rated the stock with a sell rating and ten have given a hold rating to the stock. According to data from MarketBeat.com, Paychex has a consensus 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.