IMS Capital Management Makes New $2.56 Million Investment in Paychex, Inc. $PAYX

Key Points

• IMS Capital Management has made a new investment in Paychex, Inc., purchasing approximately $2.56 million worth of shares, which amounts to 17,573 shares representing 1.2% of their portfolio.
• Paychex recently announced a quarterly dividend of $1.08 per share, yielding 3.3% with a payout ratio of 94.53%.
• Insider trading activity includes significant sales by Chairman Martin Mucci and CEO John B. Gibson, reducing their respective holdings by 17.91% and 13.14%.

IMS Capital Management purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 17,573 shares of the business services provider's stock, valued at approximately $2,556,000. Paychex accounts for 1.2% of IMS Capital Management's portfolio, making the stock its 22nd biggest holding.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PAYX. MorganRosel Wealth Management LLC acquired a new stake in Paychex during the 1st quarter valued at $34,000. Quarry LP purchased a new position in shares of Paychex during the first quarter valued at $34,000. Alpine Bank Wealth Management acquired a new position in Paychex during the first quarter valued at $34,000. Tsfg LLC lifted its stake in Paychex by 122.3% in the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock worth $35,000 after acquiring an additional 126 shares in the last quarter. Finally, Nova Wealth Management Inc. acquired a new stake in Paychex during the 1st quarter worth about $38,000. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Buying and Selling at Paychex

In other Paychex news, Chairman Martin Mucci sold 97,526 shares of the stock in a transaction 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 completion of the sale, the chairman directly owned 446,917 shares of the company's stock, valued at $64,878,940.89. This represents a 17.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction 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 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. 0.80% of the stock is owned by corporate insiders.

Paychex Price Performance

NASDAQ PAYX opened at $129.30 on Wednesday. The stock has a 50-day simple moving average of $138.57 and a 200 day simple moving average of $145.53. Paychex, Inc. has a twelve month low of $128.23 and a twelve month high of $161.24. The stock has a market capitalization of $46.50 billion, a PE ratio of 28.29, a P/E/G ratio of 2.99 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.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, hitting the consensus estimate of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the previous year, the business posted $1.12 EPS. Research analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors 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 yield of 3.3%. Paychex's payout ratio is 94.53%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on PAYX. Royal Bank Of Canada set a $165.00 target price on Paychex and gave the company a "sector perform" rating in a report on Tuesday, June 24th. Citigroup dropped their price objective on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Stifel Nicolaus decreased their target price on shares of Paychex from $152.00 to $142.00 and set a "hold" rating for the company in a research note on Monday. JPMorgan Chase & Co. upped their price target on shares of Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a research note on Thursday, August 14th. Finally, Jefferies Financial Group set a $140.00 price objective on Paychex and gave the stock a "hold" rating in a report on Thursday, June 26th. Ten analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Paychex currently has a consensus rating of "Reduce" and a consensus price target of $148.20.

Paychex 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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