Sumitomo Mitsui Trust Holdings Inc. Lowers Holdings in Paychex, Inc. (NASDAQ:PAYX)

Sumitomo Mitsui Trust Holdings Inc. decreased its stake in Paychex, Inc. (NASDAQ:PAYXFree Report) by 0.4% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 875,941 shares of the business services provider’s stock after selling 3,588 shares during the quarter. Sumitomo Mitsui Trust Holdings Inc. owned approximately 0.24% of Paychex worth $107,566,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of PAYX. Capital International Investors boosted its position in Paychex by 9.0% during the fourth quarter. Capital International Investors now owns 18,504,389 shares of the business services provider’s stock worth $2,204,115,000 after purchasing an additional 1,523,520 shares in the last quarter. Confluence Investment Management LLC purchased a new position in Paychex during the first quarter worth approximately $146,617,000. Ameriprise Financial Inc. boosted its position in Paychex by 229.8% during the third quarter. Ameriprise Financial Inc. now owns 1,630,944 shares of the business services provider’s stock worth $188,655,000 after purchasing an additional 1,136,456 shares in the last quarter. Capital World Investors purchased a new position in Paychex during the fourth quarter worth approximately $115,494,000. Finally, TD Asset Management Inc boosted its position in Paychex by 123.5% during the fourth quarter. TD Asset Management Inc now owns 1,386,462 shares of the business services provider’s stock worth $165,141,000 after purchasing an additional 766,252 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Insiders Place Their Bets

In other Paychex news, Chairman Martin Mucci sold 101,490 shares of the firm’s stock in a transaction on Monday, July 1st. The stock was sold at an average price of $117.27, for a total transaction of $11,901,732.30. Following the completion of the sale, the chairman now owns 437,345 shares of the company’s stock, valued at $51,287,448.15. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, Director David J. S. Flaschen sold 19,709 shares of Paychex stock in a transaction on Friday, May 24th. The stock was sold at an average price of $124.55, for a total value of $2,454,755.95. Following the completion of the sale, the director now directly owns 5,383 shares of the company’s stock, valued at $670,452.65. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Martin Mucci sold 101,490 shares of Paychex stock in a transaction on Monday, July 1st. The shares were sold at an average price of $117.27, for a total value of $11,901,732.30. Following the completion of the sale, the chairman now directly owns 437,345 shares of the company’s stock, valued at $51,287,448.15. The disclosure for this sale can be found here. 11.50% of the stock is owned by insiders.

Paychex Price Performance

NASDAQ:PAYX opened at $117.43 on Thursday. Paychex, Inc. has a one year low of $106.27 and a one year high of $129.70. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.37. The stock has a market cap of $42.27 billion, a PE ratio of 25.15, a P/E/G ratio of 3.13 and a beta of 1.00. The stock has a 50 day moving average price of $122.23 and a 200 day moving average price of $121.78.

Paychex (NASDAQ:PAYXGet Free Report) last posted its earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.02. The company had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.29 billion. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.97 earnings per share. Equities research analysts expect that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 30th. Shareholders of record on Friday, May 10th were paid a dividend of $0.98 per share. This is a boost from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date was Thursday, May 9th. This represents a $3.92 annualized dividend and a yield of 3.34%. Paychex’s dividend payout ratio (DPR) is 83.94%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. TD Cowen lowered their price target on Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a research report on Wednesday, April 3rd. Morgan Stanley decreased their target price on Paychex from $125.00 to $122.00 and set an “equal weight” rating on the stock in a research report on Thursday, June 27th. Bank of America raised their target price on Paychex from $111.00 to $113.00 and gave the company an “underperform” rating in a research report on Thursday, June 27th. Royal Bank of Canada restated a “sector perform” rating and issued a $130.00 target price on shares of Paychex in a research report on Thursday, June 27th. Finally, Evercore ISI restated an “in-line” rating and issued a $118.00 target price on shares of Paychex in a research report on Tuesday, March 26th. Two research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $122.46.

View Our Latest Research Report on PAYX

Paychex Company Profile

(Free Report)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, 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.

Further Reading

Institutional Ownership by Quarter for Paychex (NASDAQ:PAYX)

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