Paychex, Inc. $PAYX Shares Sold by Oribel Capital Management LP

Key Points

• Oribel Capital Management LP has reduced its stake in Paychex, Inc. by 36.5%, bringing its holdings to 151,500 shares valued at approximately $23.37 million.
• Paychex recently reported earnings of $1.19 per share, meeting analysts' estimates, and had a net margin of 29.75% with projected EPS of 4.99 for the current year.
• The company announced a quarterly dividend of $1.08 per share, resulting in an annualized dividend yield of 3.1%.

Oribel Capital Management LP lessened its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 36.5% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 151,500 shares of the business services provider's stock after selling 87,100 shares during the period. Paychex accounts for approximately 1.0% of Oribel Capital Management LP's holdings, making the stock its 17th biggest position. Oribel Capital Management LP's holdings in Paychex were worth $23,373,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in PAYX. Southeast Asset Advisors LLC raised its holdings in shares of Paychex by 13.8% during the 1st quarter. Southeast Asset Advisors LLC now owns 22,876 shares of the business services provider's stock worth $3,529,000 after acquiring an additional 2,776 shares in the last quarter. Napa Wealth Management purchased a new stake in Paychex during the first quarter valued at $546,000. Jump Financial LLC increased its holdings in shares of Paychex by 2,823.8% in the 1st quarter. Jump Financial LLC now owns 164,055 shares of the business services provider's stock worth $25,310,000 after buying an additional 158,444 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of Paychex by 33.2% during the 1st quarter. Smartleaf Asset Management LLC now owns 2,556 shares of the business services provider's stock valued at $386,000 after buying an additional 637 shares in the last quarter. Finally, Bahl & Gaynor Inc. increased its stake in Paychex by 4.8% during the first quarter. Bahl & Gaynor Inc. now owns 1,755,442 shares of the business services provider's stock worth $270,830,000 after acquiring an additional 80,138 shares during the last quarter. Hedge funds and other institutional investors 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 shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the transaction, the chief executive officer directly owned 81,755 shares of the company's stock, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Chairman Martin Mucci sold 97,526 shares of the company's stock in a transaction dated 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 sale, the chairman directly owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This represents a 17.91% decrease in their position. The disclosure for this sale can be found here. Company insiders own 11.40% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Barclays set a $155.00 price objective on shares of Paychex and gave the stock an "equal weight" rating in a research note on Tuesday, June 24th. Morgan Stanley cut their price target on shares of Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a report 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. BMO Capital Markets started coverage on shares of Paychex in a research report on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price on the stock. Finally, Royal Bank Of Canada set a $165.00 target price on Paychex and gave the stock a "sector perform" rating in a report on Tuesday, June 24th. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $149.70.

Paychex Price Performance

NASDAQ:PAYX traded up $0.07 during trading hours on Thursday, reaching $138.72. 1,680,315 shares of the company were exchanged, compared to its average volume of 2,154,248. Paychex, Inc. has a twelve month low of $128.92 and a twelve month high of $161.24. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. The stock's 50-day moving average is $142.90 and its 200-day moving average is $147.56. The firm has a market cap of $49.97 billion, a PE ratio of 30.35, a price-to-earnings-growth ratio of 3.16 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.19. The company had revenue of $1.43 billion for 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 period in the previous year, the firm posted $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. On average, sell-side analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm 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 dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Monday, July 21st. Paychex's payout ratio is 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.