True North Advisors LLC Decreases Stake in Paychex, Inc. (NASDAQ:PAYX)

Key Points

• True North Advisors LLC reduced its holdings in Paychex, Inc. by 14.8%, selling 3,410 shares and holding a total of 19,579 shares valued at $3,021,000 at the end of the first quarter.
• The company reported earnings per share (EPS) of $1.19 for the last quarter, matching analyst expectations, and revenue of $1.43 billion, exceeding the consensus estimate of $1.38 billion.
• Paychex announced a quarterly dividend of $1.08, resulting in an annualized dividend yield of 3.1%, with a payout ratio of 94.53%.

True North Advisors LLC trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 14.8% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 19,579 shares of the business services provider's stock after selling 3,410 shares during the period. True North Advisors LLC's holdings in Paychex were worth $3,021,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. JPMorgan Chase & Co. grew its position in Paychex by 36.9% during the first quarter. JPMorgan Chase & Co. now owns 1,968,564 shares of the business services provider's stock worth $303,710,000 after buying an additional 530,873 shares in the last quarter. Frank Rimerman Advisors LLC lifted its holdings in shares of Paychex by 1.7% during the 1st quarter. Frank Rimerman Advisors LLC now owns 14,622 shares of the business services provider's stock worth $2,256,000 after acquiring an additional 249 shares during the last quarter. Townsquare Capital LLC raised its position in Paychex by 58.9% in the 1st quarter. Townsquare Capital LLC now owns 13,790 shares of the business services provider's stock worth $2,128,000 after purchasing an additional 5,109 shares during the period. Zions Bancorporation National Association UT purchased a new position in shares of Paychex in the first quarter valued at about $3,536,000. Finally, Morton Community Bank purchased a new position in shares of Paychex in the first quarter valued at about $207,000. Institutional investors own 83.47% of the company's stock.

Paychex Stock Performance

NASDAQ:PAYX traded down $3.61 during trading hours on Tuesday, reaching $134.99. The company had a trading volume of 3,123,390 shares, compared to its average volume of 2,158,050. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. Paychex, Inc. has a 52 week low of $123.35 and a 52 week high of $161.24. The firm has a market cap of $48.63 billion, a price-to-earnings ratio of 29.54, a PEG ratio of 3.23 and a beta of 0.91. The firm's 50 day moving average price is $147.04 and its 200-day moving average price is $148.40.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, meeting analysts' consensus estimates of $1.19. The business had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.38 billion. Paychex had a net margin of 29.75% and a return on equity of 45.01%. During the same period in the prior year, the company earned $1.12 earnings per share. On average, analysts forecast that Paychex, Inc. will post 4.99 EPS for the current year.

Paychex Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, July 21st will be issued a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Monday, July 21st. Paychex's payout ratio is presently 94.53%.

Insider Activity

In other news, Chairman Martin Mucci sold 97,526 shares of the business's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $145.17, for a total value of $14,157,849.42. Following the completion of the sale, the chairman owned 446,917 shares in the company, valued at approximately $64,878,940.89. The trade was a 17.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO John B. Gibson sold 12,370 shares of Paychex 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 completion of the transaction, 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. Insiders own 11.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PAYX. Royal Bank Of Canada set a $165.00 price objective on shares of Paychex and gave the stock a "sector perform" rating in a research note on Tuesday, June 24th. BMO Capital Markets began coverage on shares of Paychex in a research note on Thursday, July 10th. They set a "market perform" rating and a $160.00 price objective on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Paychex from $140.00 to $148.00 and gave the stock an "underweight" rating in a research note on Wednesday, June 18th. Morgan Stanley dropped their price objective on shares of Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research note on Friday, June 27th. Finally, Citigroup set a $158.00 price objective on shares of Paychex and gave the stock a "neutral" rating in a research note on Tuesday, June 24th. One equities research analyst has rated the stock with a sell rating and ten have given a hold rating to the company. According to MarketBeat, Paychex currently has an average rating of "Hold" and an average target price of $150.20.

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.