Paychex, Inc. $PAYX Shares Sold by UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC

Key Points

• UBS Asset Management reduced its Paychex stake by 1.1%, selling 29,943 shares and retaining 2.67 million shares valued at approximately $262.5 million. Institutional investors collectively own 83.47% of the company.
• Analysts maintain a broadly cautious outlook, with Paychex carrying a consensus “Hold” rating and a $109.20 average price target, despite several firms recently raising their targets.
• Paychex exceeded quarterly earnings and revenue expectations, reporting $1.32 in EPS and $1.61 billion in revenue, while year-over-year revenue increased 12.5%. The company also pays a quarterly dividend of $1.19 per share, representing a 3.7% annualized yield.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC reduced its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 1.1% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,669,450 shares of the business services provider's stock after selling 29,943 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned approximately 0.75% of Paychex worth $262,487,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the stock. 44 Wealth Management LLC raised its stake in shares of Paychex by 2.7% in the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider's stock valued at $479,000 after acquiring an additional 86 shares during the period. Smartleaf Asset Management LLC boosted its position in shares of Paychex by 3.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider's stock worth $381,000 after purchasing an additional 89 shares during the period. Prosperity Consulting Group LLC boosted its position in shares of Paychex by 1.4% during the 3rd quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider's stock worth $922,000 after purchasing an additional 100 shares during the period. SBI Securities Co. Ltd. increased its holdings in Paychex by 14.5% in the 4th quarter. SBI Securities Co. Ltd. now owns 798 shares of the business services provider's stock valued at $90,000 after purchasing an additional 101 shares during the last quarter. Finally, Zacks Investment Management increased its holdings in Paychex by 5.1% in the 3rd quarter. Zacks Investment Management now owns 2,094 shares of the business services provider's stock valued at $265,000 after purchasing an additional 101 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Insider Transactions at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% 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, Director Joseph M. Tucci sold 3,907 shares of the business's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares of the company's stock, 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. Insiders own 0.80% of the company's stock.

Wall Street Analyst Weigh In

PAYX has been the topic of a number of research reports. UBS Group upped their price target on Paychex from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Citigroup lifted their price objective on Paychex from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Jefferies Financial Group boosted their price objective on Paychex from $105.00 to $120.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. Stifel Nicolaus increased 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. Finally, Weiss Ratings upgraded Paychex from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $109.20.

Paychex Stock Up 0.2%

Shares of NASDAQ PAYX opened at $127.34 on Tuesday. The stock has a market cap of $45.29 billion, a P/E ratio of 26.04 and a beta of 0.81. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $139.53. The business's fifty day simple moving average is $114.39 and its 200-day simple moving average is $101.17.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the previous year, the firm posted $1.19 EPS. Paychex's revenue for the quarter 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 predict that Paychex, Inc. will post 5.96 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. The ex-dividend date of this dividend was Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.7%. Paychex's payout ratio is currently 97.34%.

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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