Sepio Capital LP Decreases Holdings in Paychex, Inc. $PAYX

Key Points

• Sepio Capital LP reduced its stake in Paychex by 15.2%, now holding 17,480 shares valued at approximately $2.7 million after selling 3,122 shares.
• Paychex recently announced a quarterly dividend of $1.08 per share, which translates to an annualized dividend yield of 3.2% and a payout ratio of 94.53%.
• Analysts have mixed opinions on Paychex, with a consensus rating of Reduce and an average price target of $149.70, reflecting various adjustments from major financial institutions.

Sepio Capital LP decreased its holdings in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 15.2% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 17,480 shares of the business services provider's stock after selling 3,122 shares during the quarter. Sepio Capital LP's holdings in Paychex were worth $2,697,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Summit Wealth Partners LLC lifted its stake in Paychex by 2.4% in the first quarter. Summit Wealth Partners LLC now owns 3,027 shares of the business services provider's stock worth $467,000 after acquiring an additional 70 shares during the last quarter. LGT Group Foundation lifted its stake in Paychex by 2.8% in the first quarter. LGT Group Foundation now owns 2,528 shares of the business services provider's stock worth $390,000 after acquiring an additional 70 shares during the last quarter. Golden State Equity Partners lifted its stake in Paychex by 0.9% in the first quarter. Golden State Equity Partners now owns 7,623 shares of the business services provider's stock worth $1,176,000 after acquiring an additional 71 shares during the last quarter. Palumbo Wealth Management LLC lifted its stake in Paychex by 2.4% in the first quarter. Palumbo Wealth Management LLC now owns 3,192 shares of the business services provider's stock worth $492,000 after acquiring an additional 74 shares during the last quarter. Finally, King Wealth Management Group lifted its stake in Paychex by 4.7% in the first quarter. King Wealth Management Group now owns 1,669 shares of the business services provider's stock worth $257,000 after acquiring an additional 75 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Paychex Stock Performance

Shares of NASDAQ:PAYX traded up $2.44 during trading on Thursday, reaching $135.51. The company had a trading volume of 1,031,187 shares, compared to its average volume of 2,131,284. The firm has a market capitalization of $48.73 billion, a price-to-earnings ratio of 29.65, a price-to-earnings-growth ratio of 3.08 and a beta of 0.91. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.28 and a quick ratio of 1.28. The stock's fifty day moving average price is $140.91 and its 200 day moving average price is $146.76. Paychex, Inc. has a fifty-two week low of $131.83 and a fifty-two week high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last released its earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.19. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.38 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%.During the same quarter in the previous year, the company posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. As a group, equities research analysts predict that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were issued a $1.08 dividend. The ex-dividend date of this dividend was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.2%. Paychex's payout ratio is presently 94.53%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on PAYX. BMO Capital Markets started coverage on Paychex in a research note on Thursday, July 10th. They set a "market perform" rating and a $160.00 target price for the company. Citigroup lowered their price target on Paychex from $158.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. JPMorgan Chase & Co. upped their price target on Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a report on Thursday, August 14th. Morgan Stanley lowered their price target on Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a report on Friday, June 27th. Finally, Jefferies Financial Group set a $140.00 price target on Paychex and gave the company a "hold" rating in a report on Thursday, June 26th. Ten analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $149.70.

Insider Activity at Paychex

In other Paychex news, 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 transaction of $1,755,550.40. Following the transaction, the chief executive officer 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 transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total value of $14,157,849.42. Following the transaction, the chairman owned 446,917 shares in the company, valued at $64,878,940.89. The trade was a 17.91% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.80% of the company's stock.

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.