Wellington Management Group LLP Purchases 18,485 Shares of Paychex, Inc. $PAYX

Key Points

• Wellington Management Group LLP raised its stake in Paychex, increasing its holdings by 51.3%, totaling 54,512 shares worth approximately $8.41 million.
• A significant portion of Paychex stock, about 83.47%, is owned by institutional investors and hedge funds, indicating strong institutional interest.
• Paychex declared a quarterly dividend of $1.08 per share, reflecting a yield of 3.1%, with an upcoming payment date on August 29th.

Wellington Management Group LLP increased its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 51.3% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 54,512 shares of the business services provider's stock after buying an additional 18,485 shares during the period. Wellington Management Group LLP's holdings in Paychex were worth $8,410,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Alpine Bank Wealth Management bought a new stake in Paychex in the 1st quarter valued at about $34,000. MorganRosel Wealth Management LLC bought a new stake in Paychex in the 1st quarter valued at about $34,000. Tsfg LLC raised its position in shares of Paychex by 122.3% in the 1st quarter. Tsfg LLC now owns 229 shares of the business services provider's stock valued at $35,000 after buying an additional 126 shares in the last quarter. HWG Holdings LP acquired a new position in shares of Paychex in the 1st quarter valued at approximately $46,000. Finally, Itau Unibanco Holding S.A. raised its position in shares of Paychex by 381.2% in the 4th quarter. Itau Unibanco Holding S.A. now owns 409 shares of the business services provider's stock valued at $57,000 after buying an additional 324 shares in the last quarter. Institutional investors own 83.47% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently commented on PAYX. Jefferies Financial Group set a $140.00 target price on shares of Paychex and gave the company a "hold" rating in a research report on Thursday, June 26th. Royal Bank Of Canada set a $165.00 target price on shares of Paychex and gave the company a "sector perform" rating in a research report on Tuesday, June 24th. Morgan Stanley dropped their target price on shares of Paychex from $150.00 to $148.00 and set an "equal weight" rating for the company in a research report on Friday, June 27th. Barclays set a $155.00 target price on shares of Paychex and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. Finally, UBS Group dropped their target price on shares of Paychex from $155.00 to $145.00 and set a "neutral" rating for the company in a research report on Thursday, June 26th. Ten investment 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, Paychex presently has an average rating of "Reduce" and a consensus price target of $149.70.

Insider Buying and Selling at Paychex

In other news, Chairman Martin Mucci sold 97,526 shares of the firm's stock in a transaction on Thursday, July 10th. The shares were 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 approximately $64,878,940.89. This trade represents a 17.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO John B. Gibson sold 12,370 shares of the firm's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the transaction, the chief executive officer directly 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 disclosure for this sale can be found here. 11.40% of the stock is currently owned by company insiders.

Paychex Price Performance

NASDAQ:PAYX traded up $0.74 on Monday, hitting $139.46. The company had a trading volume of 1,715,827 shares, compared to its average volume of 2,113,667. The stock has a market capitalization of $50.24 billion, a price-to-earnings ratio of 30.52, a PEG ratio of 3.19 and a beta of 0.91. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.10. The firm has a 50 day moving average of $142.48 and a two-hundred day moving average of $147.45. Paychex, Inc. has a 52 week low of $128.92 and a 52 week high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 25th. The business services provider reported $1.19 EPS for the quarter, meeting the consensus estimate of $1.19. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.38 billion. Paychex had a net margin of 29.75% and a return on equity of 45.01%. During the same quarter in the prior year, the firm earned $1.12 EPS. Paychex has set its FY 2026 guidance at EPS. On average, research analysts anticipate that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, July 21st were paid a dividend of $1.08 per share. The ex-dividend date of this dividend was Monday, July 21st. This represents a $4.32 annualized dividend and a dividend yield of 3.1%. Paychex's dividend payout ratio (DPR) is presently 94.53%.

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.