USS Investment Management Ltd Sells 18,600 Shares of Paychex, Inc. $PAYX

Key Points

• USS Investment Management Ltd sold 18,600 shares of Paychex, Inc., reducing its stake by 25.2%, leaving them with 55,208 shares valued at approximately $8.51 million.
• Paychex recently reported a net margin of 29.75% and earnings per share (EPS) of $1.19, meeting analyst expectations, with revenue of $1.43 billion surpassing estimates.
• The company announced a quarterly dividend of $1.08, resulting in a 3.2% yield, with a current dividend payout ratio of 94.53%.

USS Investment Management Ltd cut its position in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 25.2% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 55,208 shares of the business services provider's stock after selling 18,600 shares during the quarter. USS Investment Management Ltd's holdings in Paychex were worth $8,513,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the company. UniSuper Management Pty Ltd grew its position in Paychex by 397.9% during the first quarter. UniSuper Management Pty Ltd now owns 132,010 shares of the business services provider's stock worth $20,367,000 after buying an additional 105,497 shares in the last quarter. Select Equity Group L.P. grew its position in Paychex by 99.0% during the first quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider's stock worth $539,102,000 after buying an additional 1,738,372 shares in the last quarter. Nissay Asset Management Corp Japan ADV lifted its stake in Paychex by 10.3% during the first quarter. Nissay Asset Management Corp Japan ADV now owns 85,518 shares of the business services provider's stock worth $13,194,000 after purchasing an additional 7,984 shares during the period. NewEdge Advisors LLC boosted its holdings in Paychex by 3.8% during the first quarter. NewEdge Advisors LLC now owns 39,791 shares of the business services provider's stock valued at $6,139,000 after purchasing an additional 1,472 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Paychex by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 301,197 shares of the business services provider's stock valued at $46,469,000 after purchasing an additional 12,307 shares during the period. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Price Performance

Shares of NASDAQ:PAYX traded down $0.35 during trading on Friday, reaching $135.11. The stock had a trading volume of 1,305,369 shares, compared to its average volume of 1,876,443. Paychex, Inc. has a 52 week low of $131.83 and a 52 week high of $161.24. The business's 50-day moving average price is $140.44 and its 200 day moving average price is $146.53. 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 has a market capitalization of $48.59 billion, a PE ratio of 29.56, a P/E/G ratio of 3.10 and a beta of 0.91.

Paychex (NASDAQ:PAYX - Get Free Report) last posted 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. Paychex had a net margin of 29.75% and a return on equity of 45.01%. 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 previous year, the company posted $1.12 earnings per share. Paychex has set its FY 2026 guidance at EPS. As a group, equities analysts predict that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

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

Insider Activity at Paychex

In related 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 in the company, valued at $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 available at 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 transaction of $14,157,849.42. Following the completion of the transaction, the chairman owned 446,917 shares of the company's stock, valued at $64,878,940.89. This trade represents 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.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PAYX. JPMorgan Chase & Co. upped their price objective on Paychex from $148.00 to $153.00 and gave the company an "underweight" rating in a research note on Thursday, August 14th. Morgan Stanley lowered their price objective on Paychex from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research note on Friday, June 27th. Citigroup lowered their price objective on Paychex from $158.00 to $148.00 and set a "neutral" rating on the stock in a research note on Thursday, August 21st. Stifel Nicolaus lowered their price objective on Paychex from $156.00 to $152.00 and set a "hold" rating on the stock in a research note on Thursday, June 26th. Finally, Barclays set a $155.00 price objective on Paychex and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. Ten analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Paychex currently has a consensus rating of "Reduce" and a consensus target price of $149.70.

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.