Paychex, Inc. $PAYX Stake Reduced by Rafferty Asset Management LLC

Key Points

• Rafferty Asset Management LLC sold 9,300 shares of Paychex, Inc., reducing its holdings by 7.6% to 112,719 shares, valued at approximately $17.39 million.
• Paychex's quarterly revenue of $1.43 billion exceeded analyst estimates of $1.38 billion, while earnings per share met expectations at $1.19.
• The company declared a quarterly dividend of $1.08 per share, reflecting an annualized dividend yield of 3.1% and a payout ratio of 94.53%.

Rafferty Asset Management LLC lessened its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 7.6% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 112,719 shares of the business services provider's stock after selling 9,300 shares during the period. Rafferty Asset Management LLC's holdings in Paychex were worth $17,390,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. Brighton Jones LLC boosted its holdings in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock worth $801,000 after purchasing an additional 1,190 shares during the period. Marshall Wace LLP bought a new position in shares of Paychex in the 4th quarter worth about $227,000. Susquehanna Fundamental Investments LLC acquired a new position in shares of Paychex in the 4th quarter valued at about $4,458,000. Northern Trust Corp grew its position in shares of Paychex by 16.9% during the 4th quarter. Northern Trust Corp now owns 4,807,554 shares of the business services provider's stock valued at $674,115,000 after buying an additional 694,651 shares during the last quarter. Finally, Lido Advisors LLC raised its stake in Paychex by 2.1% during the fourth quarter. Lido Advisors LLC now owns 7,188 shares of the business services provider's stock worth $1,008,000 after acquiring an additional 149 shares during the period. 83.47% of the stock is currently owned by institutional investors.

Paychex Stock Performance

Paychex stock traded up $0.74 during mid-day trading on Friday, hitting $139.46. 1,715,827 shares of the company's stock traded hands, compared to its average volume of 2,239,642. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.10. Paychex, Inc. has a one year low of $128.92 and a one year high of $161.24. The firm has a 50 day moving average price of $142.48 and a 200 day moving average price of $147.46. The company has a market cap of $50.24 billion, a PE ratio of 30.52, a price-to-earnings-growth ratio of 3.18 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last released 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 company had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the prior year, the business posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. On average, equities analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The business 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. 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 presently 94.53%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on PAYX shares. Jefferies Financial Group set a $140.00 target price on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Stifel Nicolaus reduced their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating for the company in a research report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 price objective on Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. JPMorgan Chase & Co. raised their target price on Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research note on Thursday, August 14th. Finally, Citigroup reduced their price target on shares of Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. Ten investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $149.70.

Insider Transactions 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 transaction of $14,157,849.42. Following the transaction, the chairman owned 446,917 shares in the company, valued at $64,878,940.89. This trade represents a 17.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John B. Gibson sold 12,370 shares of the business's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 81,755 shares in the company, valued at approximately $11,602,669.60. The trade was 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.

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.