Paychex, Inc. $PAYX Shares Sold by Cozad Asset Management Inc.

Key Points

• Cozad Asset Management reduced its Paychex stake by 57.9% in the first quarter, selling 12,221 shares and retaining 8,899 shares valued at approximately $820,000. Institutional investors and hedge funds collectively own 83.47% of the company.
• Paychex reported quarterly adjusted EPS of $1.32, slightly exceeding estimates, while revenue rose 12.5% year over year to $1.61 billion. The company declared a $1.19 quarterly dividend, equivalent to a 4.1% annualized yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $108.20, below the reported share price of $116.84. Recent insider activity was also negative, with the CFO and a director selling shares.

Cozad Asset Management Inc. cut its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 57.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 8,899 shares of the business services provider's stock after selling 12,221 shares during the quarter. Cozad Asset Management Inc.'s holdings in Paychex were worth $820,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of PAYX. Brighton Jones LLC lifted its position in Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after purchasing an additional 1,190 shares during the period. Bison Wealth LLC grew its position in Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after purchasing an additional 117 shares during the period. Woodline Partners LP purchased a new position in shares of Paychex during the 1st quarter valued at about $3,333,000. NewEdge Advisors LLC raised its stake in shares of Paychex by 3.2% during the 2nd quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider's stock valued at $5,976,000 after buying an additional 1,290 shares during the last quarter. Finally, Sei Investments Co. raised its stake in shares of Paychex by 47.1% during the 2nd quarter. Sei Investments Co. now owns 156,680 shares of the business services provider's stock valued at $22,790,000 after buying an additional 50,169 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Paychex Stock Performance

PAYX stock opened at $116.84 on Monday. The company's 50-day simple moving average is $104.42 and its 200-day simple moving average is $98.51. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $146.83. The firm has a market cap of $41.56 billion, a P/E ratio of 23.89 and a beta of 0.81.

Paychex (NASDAQ:PAYX - Get Free Report) last posted its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period last year, the firm earned $1.19 EPS. The company's quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is presently 97.34%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Stifel Nicolaus upped their target price on Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a research note on Wednesday, June 17th. Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. Cantor Fitzgerald reissued an "underweight" rating and issued a $107.00 price target on shares of Paychex in a report on Monday, July 20th. UBS Group boosted their price target on Paychex from $105.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Finally, Citigroup upped their price objective on Paychex from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Paychex presently has a consensus rating of "Hold" and a consensus target price of $108.20.

Insider Activity at Paychex

In other news, CFO Robert L. Schrader sold 2,600 shares of the company's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares of the company's stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by company insiders.

Paychex Profile

Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

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