Mizuho Securities USA LLC Lowers Stock Holdings in Paychex, Inc. (NASDAQ:PAYX)

Key Points

• Mizuho Securities USA LLC reduced its stake in Paychex, Inc. by 15.5%, owning 25,659 shares valued at approximately $3.96 million as of the end of the first quarter.
• Several institutional investors have significantly increased their positions in Paychex, with GAMMA Investing LLC raising its stake by an astonishing 20,236.7%, acquiring over 1.1 million additional shares.
• Paychex recently announced a quarterly dividend of $1.08 per share, representing an annualized dividend yield of 3.1%, with a payout ratio of 94.53%.

Mizuho Securities USA LLC lessened its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 15.5% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 25,659 shares of the business services provider's stock after selling 4,699 shares during the quarter. Mizuho Securities USA LLC's holdings in Paychex were worth $3,959,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of PAYX. Alpine Bank Wealth Management purchased a new stake in shares of Paychex during the first quarter worth about $34,000. MorganRosel Wealth Management LLC purchased a new stake in Paychex during the 1st quarter worth approximately $34,000. Tsfg LLC raised its holdings in shares of Paychex by 122.3% during the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after acquiring an additional 126 shares during the last quarter. Transce3nd LLC purchased a new position in shares of Paychex in the fourth quarter valued at approximately $44,000. Finally, HWG Holdings LP purchased a new position in shares of Paychex in the first quarter valued at approximately $46,000. Hedge funds and other institutional investors own 83.47% of the company's stock.

Paychex Stock Down 0.1%

Shares of Paychex stock traded down $0.20 on Thursday, reaching $138.41. 540,660 shares of the company were exchanged, compared to its average volume of 2,150,118. The stock's 50 day moving average price is $146.16 and its 200-day moving average price is $148.24. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.28 and a quick ratio of 1.28. Paychex, Inc. has a 1-year low of $124.64 and a 1-year high of $161.24. The company has a market cap of $49.86 billion, a P/E ratio of 30.29, a price-to-earnings-growth ratio of 3.09 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last posted 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. The company had revenue of $1.43 billion during 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 previous year, the business posted $1.12 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The firm 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 dividend on an annualized basis and a dividend yield of 3.1%. Paychex's dividend payout ratio is presently 94.53%.

Insider Transactions at Paychex

In other news, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The shares were 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 approximately $11,602,669.60. The trade was a 13.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 transaction of $14,157,849.42. Following the completion of the transaction, the chairman directly owned 446,917 shares in the company, valued at $64,878,940.89. This trade represents a 17.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 11.40% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on PAYX shares. Jefferies Financial Group set a $140.00 price objective on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Barclays set a $155.00 price objective on shares of Paychex and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. Stifel Nicolaus dropped their price objective on shares of Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 target price on Paychex and gave the company a "sector perform" rating in a research report on Tuesday, June 24th. Finally, BMO Capital Markets started coverage on shares of Paychex in a report on Thursday, July 10th. They issued a "market perform" rating and a $160.00 price objective on the stock. One analyst has rated the stock with a sell rating and ten have assigned a hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $150.70.

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.