Paychex, Inc. (NASDAQ:PAYX) Shares Sold by Vestcor Inc

Key Points

• Vestcor Inc. reduced its stake in Paychex, Inc. by 3.4% in the first quarter, now holding 76,857 shares valued at approximately $11.86 million.
• Paychex recently declared a $1.08 quarterly dividend with a yield of 2.93%, scheduled for payment on August 29th to investors of record.
• Analysts have set a consensus price target of $150.20 for Paychex shares, indicating varied market expectations with ratings ranging from sell to hold.

Vestcor Inc lowered its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 3.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 76,857 shares of the business services provider's stock after selling 2,712 shares during the quarter. Vestcor Inc's holdings in Paychex were worth $11,857,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also added to or reduced their stakes in the business. GAMMA Investing LLC lifted its holdings in shares of Paychex by 20,236.7% during the first quarter. GAMMA Investing LLC now owns 1,153,089 shares of the business services provider's stock worth $177,899,000 after purchasing an additional 1,147,419 shares during the period. Northern Trust Corp lifted its holdings in shares of Paychex by 16.9% during the fourth quarter. Northern Trust Corp now owns 4,807,554 shares of the business services provider's stock worth $674,115,000 after purchasing an additional 694,651 shares during the period. Norges Bank acquired a new stake in shares of Paychex during the fourth quarter worth about $78,215,000. Capital Research Global Investors lifted its holdings in Paychex by 43.5% in the fourth quarter. Capital Research Global Investors now owns 1,519,430 shares of the business services provider's stock valued at $213,054,000 after acquiring an additional 460,295 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Paychex by 14.7% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,130,781 shares of the business services provider's stock valued at $438,998,000 after acquiring an additional 401,552 shares during the period. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Down 3.5%

Shares of PAYX traded down $4.99 during mid-day trading on Friday, hitting $139.34. 4,235,395 shares of the company's stock were exchanged, compared to its average volume of 2,156,836. The company has a market cap of $50.20 billion, a price-to-earnings ratio of 30.49, a P/E/G ratio of 3.34 and a beta of 0.88. Paychex, Inc. has a fifty-two week low of $122.07 and a fifty-two week high of $161.24. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.28 and a current ratio of 1.28. The stock's 50-day moving average is $149.51 and its 200-day moving average is $148.62.

Paychex (NASDAQ:PAYX - Get Free Report) last issued 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. The business had revenue of $1.43 billion for 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 prior year, the company earned $1.12 earnings per share. On average, sell-side analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, July 21st will be issued 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 dividend payout ratio (DPR) is 94.53%.

Insider Activity at Paychex

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

Analyst Ratings Changes

A number of brokerages have issued reports on PAYX. Stifel Nicolaus decreased their price target on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a report on Thursday, June 26th. UBS Group cut their price objective on Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research report on Thursday, June 26th. Citigroup set a $158.00 price objective on Paychex and gave the company a "neutral" rating in a research note on Tuesday, June 24th. BMO Capital Markets initiated coverage on shares of Paychex in a report on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price for the company. Finally, JPMorgan Chase & Co. upped their target price on shares of Paychex from $140.00 to $148.00 and gave the stock an "underweight" rating in a report on Wednesday, June 18th. 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 MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $150.20.

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.