Sei Investments Co. Cuts Stake in Paychex, Inc. $PAYX

Key Points

• Sei Investments cut its Paychex stake by 13.1% in the first quarter, selling 19,034 shares and retaining 126,256 shares valued at approximately $11.6 million. Institutional investors collectively own 83.47% of Paychex.
• Analysts maintain a consensus “Hold” rating with an average price target of $108.20, despite several firms raising their targets. Paychex shares recently opened at $116.84.
• Paychex exceeded quarterly expectations with $1.32 in EPS and $1.61 billion in revenue, while revenue grew 12.5% year over year. The company also declared a quarterly dividend of $1.19 per share, representing a 4.1% annualized yield.

Sei Investments Co. reduced its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 13.1% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 126,256 shares of the business services provider's stock after selling 19,034 shares during the quarter. Sei Investments Co.'s holdings in Paychex were worth $11,629,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in shares of Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. LBP AM SA boosted its position in shares of Paychex by 125.2% during the fourth quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock valued at $4,545,000 after buying an additional 22,527 shares during the last quarter. Tectonic Advisors LLC boosted its position in shares of Paychex by 17.4% during the fourth quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock valued at $8,942,000 after buying an additional 11,805 shares during the last quarter. Comerica Bank increased its holdings in Paychex by 10.4% in the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock worth $13,653,000 after buying an additional 11,497 shares in the last quarter. Finally, Danske Bank A S increased its holdings in Paychex by 14.0% in the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock worth $23,035,000 after buying an additional 25,184 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PAYX has been the topic of several research analyst reports. Morgan Stanley upped their target price on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. TD Cowen lifted their price target on shares of Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a research note on Monday, June 8th. Cantor Fitzgerald reissued an "underweight" rating and set a $107.00 price objective on shares of Paychex in a report on Monday, July 20th. Royal Bank Of Canada restated a "sector perform" rating on shares of Paychex in a research report on Thursday, May 28th. Finally, JPMorgan Chase & Co. raised their target price on shares of Paychex from $100.00 to $105.00 and gave the stock an "underweight" rating in a report on Thursday, June 25th. One investment 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 data from MarketBeat.com, Paychex has a consensus rating of "Hold" and an average target price of $108.20.

Insider Activity

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

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $116.84 on Friday. Paychex, Inc. has a 12-month low of $85.45 and a 12-month high of $146.83. The firm has a market capitalization of $41.56 billion, a price-to-earnings ratio of 23.89 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm has a 50 day moving average of $104.42 and a 200 day moving average of $98.61.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. The firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. 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 payout ratio is currently 97.34%.

Paychex Company 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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