The Manufacturers Life Insurance Company Sells 3,092 Shares of Paychex, Inc. $PAYX

Key Points

• The Manufacturers Life Insurance Company reduced its holdings in Paychex, Inc. by 1.3%, now owning approximately 0.07% of the company, worth about $36.4 million.
• Paychex's CEO and Chairman both sold significant shares in the company, with the CEO reducing his position by 13.14% and the Chairman by 17.91%.
• The company reported $1.43 billion in revenue for the last quarter and recently declared a quarterly dividend of $1.08 per share, with a dividend yield of 3.1%.

The Manufacturers Life Insurance Company reduced its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 1.3% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 235,993 shares of the business services provider's stock after selling 3,092 shares during the period. The Manufacturers Life Insurance Company owned 0.07% of Paychex worth $36,406,000 at the end of the most recent quarter.

Other large investors also recently made changes to their positions in the company. Alpine Bank Wealth Management bought a new position in shares of Paychex during the first quarter valued at about $34,000. MorganRosel Wealth Management LLC bought a new stake in Paychex in the first quarter worth about $34,000. Tsfg LLC raised its position in Paychex by 122.3% in the first quarter. Tsfg LLC now owns 229 shares of the business services provider's stock worth $35,000 after acquiring an additional 126 shares during the period. HWG Holdings LP bought a new stake in Paychex in the first quarter worth about $46,000. Finally, Olde Wealth Management LLC bought a new stake in Paychex in the first quarter worth about $59,000. 83.47% of the stock is owned by institutional investors.

Paychex Price Performance

NASDAQ:PAYX traded down $0.33 during mid-day trading on Wednesday, hitting $135.63. 1,549,203 shares of the stock traded hands, compared to its average volume of 1,994,196. The business's 50-day moving average price is $141.87 and its 200 day moving average price is $147.24. The company has a market cap of $48.86 billion, a PE ratio of 29.68, a price-to-earnings-growth ratio of 3.19 and a beta of 0.91. Paychex, Inc. has a 12-month low of $128.92 and a 12-month high of $161.24. 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 (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, hitting analysts' consensus estimates of $1.19. Paychex had a net margin of 29.75% and a return on equity of 45.01%. The business had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the previous year, the company earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. On average, analysts expect that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

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

Insider Buying and Selling

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 shares were sold at an average price of $141.92, for a total value of $1,755,550.40. Following the completion of the transaction, the chief executive officer owned 81,755 shares of the company's stock, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 transaction of $14,157,849.42. Following the completion of the transaction, the chairman directly owned 446,917 shares of the company's stock, valued at approximately $64,878,940.89. This represents a 17.91% decrease in their position. The disclosure for this sale can be found here. 11.40% of the stock is owned by insiders.

Analysts Set New Price Targets

Several brokerages have commented on PAYX. Jefferies Financial Group set a $140.00 price objective on shares of Paychex and gave the stock a "hold" rating in a research report on Thursday, June 26th. BMO Capital Markets initiated coverage on shares of Paychex in a research note on Thursday, July 10th. They issued a "market perform" rating and a $160.00 target price for the company. JPMorgan Chase & Co. lifted their target price on shares of Paychex from $148.00 to $153.00 and gave the stock an "underweight" rating in a research note on Thursday, August 14th. Barclays set a $155.00 target price on shares of Paychex and gave the stock an "equal weight" rating in a research note on Tuesday, June 24th. Finally, UBS Group reduced their target price on shares of Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research note 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.com, the stock has an average rating of "Reduce" and an average price target of $149.70.

About Paychex

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.