Jefferies Financial Group Inc. Invests $1.33 Million in Paychex, Inc. (NASDAQ:PAYX)

Key Points

• Jefferies Financial Group Inc. invested approximately $1.33 million in Paychex, acquiring 8,631 shares in the 1st quarter of this year.
• Paychex announced a quarterly dividend of $1.08 per share, reflecting an annualized dividend yield of 3.1%, with the ex-dividend date set for July 21st.
• Paychex's stock experienced a 0.2% decline, trading at $139.18, with a market cap of $50.14 billion and a PE ratio of 30.46.

Jefferies Financial Group Inc. purchased a new position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 8,631 shares of the business services provider's stock, valued at approximately $1,332,000.

Several other large investors have also recently made changes to their positions in PAYX. Robeco Institutional Asset Management B.V. grew its holdings in 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 valued at $21,117,000 after buying an additional 74,245 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in 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 valued at $18,404,000 after buying an additional 29,320 shares in the last quarter. Fifth Third Wealth Advisors LLC grew its holdings in shares of 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 purchasing an additional 843 shares during the period. Oppenheimer Asset Management Inc. grew its holdings in shares of 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 purchasing an additional 502 shares during the period. Finally, GAMMA Investing LLC grew its holdings in shares of Paychex by 31.8% during the 1st quarter. GAMMA Investing LLC now owns 7,474 shares of the business services provider's stock worth $1,153,000 after purchasing an additional 1,804 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Down 0.2%

Shares of PAYX traded down $0.25 during mid-day trading on Tuesday, reaching $139.18. The company's stock had a trading volume of 1,976,749 shares, compared to its average volume of 2,174,916. Paychex, Inc. has a 12-month low of $122.07 and a 12-month high of $161.24. The stock has a market cap of $50.14 billion, a PE ratio of 30.46, a price-to-earnings-growth ratio of 3.19 and a beta of 0.91. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.28 and a quick ratio of 1.28. The company's 50 day moving average is $148.84 and its 200 day moving average is $148.60.

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, meeting analysts' consensus estimates of $1.19. Paychex had a return on equity of 45.01% and a net margin of 29.75%. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the business posted $1.12 EPS. Equities analysts anticipate that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

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

Insider Activity at Paychex

In other Paychex news, Chairman Martin Mucci sold 97,526 shares of Paychex stock in a transaction that occurred 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 in the company, 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 SEC, which can be accessed through this hyperlink. Also, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction that occurred on 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 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 ownership of the stock. The disclosure for this sale can be found here. Company insiders own 11.40% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Citigroup set a $158.00 target price on Paychex and gave the stock a "neutral" rating in a research note on Tuesday, June 24th. 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. UBS Group decreased 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. Stifel Nicolaus decreased their target price on Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a research note on Thursday, June 26th. Finally, 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. One investment analyst has rated the stock with a sell rating and ten have assigned a hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $150.20.

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.