Townsquare Capital LLC Buys 5,109 Shares of Paychex, Inc. (NASDAQ:PAYX)

Key Points

• Townsquare Capital LLC increased its stake in Paychex, Inc. by 58.9% during the first quarter, owning 13,790 shares worth approximately $2.13 million.
• CEO John B. Gibson and Chairman Martin Mucci both sold significant shares of the company, reducing their ownership by 13.14% and 17.91% respectively.
• Paychex announced a quarterly dividend of $1.08 per share, representing an annual yield of 3.2%, with a payout ratio of approximately 94.53%.

Townsquare Capital LLC increased its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 58.9% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 13,790 shares of the business services provider's stock after acquiring an additional 5,109 shares during the quarter. Townsquare Capital LLC's holdings in Paychex were worth $2,128,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the business. Summit Wealth Partners LLC increased its holdings in Paychex by 2.4% in the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock worth $467,000 after purchasing an additional 70 shares in the last quarter. Golden State Equity Partners increased its holdings in Paychex by 0.9% in the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after purchasing an additional 71 shares in the last quarter. Palumbo Wealth Management LLC increased its holdings in Paychex by 2.4% in the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after purchasing an additional 74 shares in the last quarter. King Wealth Management Group increased its holdings in Paychex by 4.7% in the first quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock worth $257,000 after purchasing an additional 75 shares in the last quarter. Finally, Asset Dedication LLC increased its holdings in Paychex by 12.1% in the first quarter. Asset Dedication LLC now owns 711 shares of the business services provider's stock worth $110,000 after purchasing an additional 77 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Paychex Stock Up 0.6%

Paychex stock traded up $0.76 during trading on Friday, hitting $138.25. 2,671,372 shares of the company were exchanged, compared to its average volume of 2,081,869. The business's 50 day moving average is $145.29 and its 200 day moving average is $148.10. Paychex, Inc. has a 52 week low of $124.64 and a 52 week high of $161.24. The company has a market capitalization of $49.80 billion, a P/E ratio of 30.25, a PEG ratio of 3.15 and a beta of 0.91. 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 (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings results 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. Paychex had a return on equity of 45.01% and a net margin of 29.75%. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the company posted $1.12 earnings per share. Analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

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

Insider Buying and Selling at Paychex

In other Paychex news, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction 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 owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. The trade was a 17.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction on 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 directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. This represents a 13.14% decrease in their position. The disclosure for this sale can be found here. 11.40% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. 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. JPMorgan Chase & Co. boosted their price objective on Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a report on Thursday. UBS Group decreased their price objective on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a report on Thursday, June 26th. BMO Capital Markets initiated coverage on Paychex in a report on Thursday, July 10th. They set a "market perform" rating and a $160.00 price objective for the company. Finally, Stifel Nicolaus decreased their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. One analyst has rated the stock with a sell rating and ten have given a hold rating to the company. According to data from MarketBeat.com, Paychex currently has an average rating of "Hold" and a consensus price target of $150.70.

About Paychex

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.