Insider Selling: Paychex (NASDAQ:PAYX) CFO Sells 2,600 Shares of Stock

Key Points

• Paychex CFO Robert Schrader sold 2,600 shares at an average price of $115.09, totaling about $299,234. His remaining stake fell 12.29% to 18,547 shares.
• Paychex recently exceeded quarterly earnings expectations, reporting $1.32 EPS and $1.61 billion in revenue, with revenue up 12.5% year over year. The company issued fiscal 2027 EPS guidance of $5.90–$6.01.
• The company declared a quarterly dividend of $1.19 per share, equivalent to $4.76 annually and a 4.0% yield. Analysts maintain a consensus “Hold” rating with an average price target of $107.53.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report) CFO Robert Schrader sold 2,600 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Paychex Stock Performance

PAYX traded up $3.64 during midday trading on Tuesday, hitting $119.12. 2,279,202 shares of the company traded hands, compared to its average volume of 3,676,971. The company's 50-day moving average is $102.55 and its 200 day moving average is $98.35. The firm has a market capitalization of $42.37 billion, a PE ratio of 24.35 and a beta of 0.84. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52 week low of $85.45 and a 52 week high of $148.00.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the firm posted $1.19 EPS. Paychex's quarterly revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts expect that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Tuesday, July 28th. Paychex's payout ratio is currently 97.34%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Morgan Stanley raised their target price on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. Stifel Nicolaus boosted their price objective on shares of Paychex from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Wednesday, June 17th. Cantor Fitzgerald restated an "underweight" rating and set a $107.00 price objective on shares of Paychex in a report on Monday, July 20th. Citigroup upgraded shares of Paychex from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $99.00 to $140.00 in a report on Monday, June 15th. Finally, TD Cowen upped their target price on Paychex from $94.00 to $98.00 and gave the stock a "hold" rating in a report on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Paychex currently has a consensus rating of "Hold" and a consensus target price of $107.53.

Institutional Trading of Paychex

A number of institutional investors have recently modified their holdings of the company. Cornerstone Planning Group LLC boosted its stake in Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in shares of Paychex during the fourth quarter worth $31,000. Kingdom Financial Group LLC. acquired a new position in shares of Paychex during the fourth quarter worth $33,000. Leonteq Securities AG lifted its holdings in shares of Paychex by 2,669.2% during the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider's stock valued at $33,000 after purchasing an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC purchased a new stake in shares of Paychex during the 4th quarter valued at $34,000. 83.47% of the stock is currently owned by institutional investors.

Paychex Company Profile

Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

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