Retirement Systems of Alabama Reduces Stock Position in Paychex, Inc. (NASDAQ:PAYX)

Retirement Systems of Alabama cut its stake in Paychex, Inc. (NASDAQ:PAYX) by 1.2% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 69,795 shares of the business services provider’s stock after selling 875 shares during the quarter. Retirement Systems of Alabama’s holdings in Paychex were worth $9,366,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the stock. Meeder Asset Management Inc. grew its holdings in Paychex by 286.0% during the 2nd quarter. Meeder Asset Management Inc. now owns 220 shares of the business services provider’s stock valued at $26,000 after buying an additional 163 shares in the last quarter. Strategic Financial Concepts LLC bought a new position in shares of Paychex in the second quarter valued at approximately $30,000. American National Bank grew its stake in Paychex by 166.7% during the second quarter. American National Bank now owns 288 shares of the business services provider’s stock valued at $34,000 after acquiring an additional 180 shares in the last quarter. Fortitude Family Office LLC increased its holdings in Paychex by 42.0% during the 3rd quarter. Fortitude Family Office LLC now owns 250 shares of the business services provider’s stock worth $34,000 after acquiring an additional 74 shares during the period. Finally, Quarry LP increased its holdings in Paychex by 152.6% during the 2nd quarter. Quarry LP now owns 293 shares of the business services provider’s stock worth $35,000 after acquiring an additional 177 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Price Performance

PAYX stock opened at $141.20 on Tuesday. The firm has a market cap of $50.82 billion, a P/E ratio of 30.11, a P/E/G ratio of 3.88 and a beta of 0.99. The firm’s fifty day moving average is $142.78 and its 200 day moving average is $132.28. Paychex, Inc. has a 52 week low of $114.72 and a 52 week high of $150.71. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.38 and a current ratio of 1.38.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.14 by $0.02. The firm had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.31 billion. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period last year, the firm earned $1.14 earnings per share. Research analysts predict that Paychex, Inc. will post 4.98 earnings per share for the current year.

Paychex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 7th were paid a $0.98 dividend. The ex-dividend date of this dividend was Thursday, November 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.78%. Paychex’s dividend payout ratio (DPR) is currently 83.58%.

Insider Buying and Selling at Paychex

In related news, VP Michael E. Gioja sold 26,428 shares of the firm’s stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $139.03, for a total value of $3,674,284.84. Following the sale, the vice president now directly owns 14,515 shares of the company’s stock, valued at $2,018,020.45. This trade represents a 64.55 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Robert L. Schrader sold 13,015 shares of the company’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the transaction, the chief financial officer now directly owns 17,362 shares of the company’s stock, valued at $2,471,480.70. The trade was a 42.84 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 54,174 shares of company stock worth $7,577,231. 11.40% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several research analysts have commented on PAYX shares. Barclays raised their price target on shares of Paychex from $118.00 to $132.00 and gave the company an “equal weight” rating in a report on Monday, September 23rd. Citigroup lifted their price objective on Paychex from $125.00 to $145.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Jefferies Financial Group upped their target price on Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a research note on Wednesday, October 2nd. TD Cowen lifted their price target on Paychex from $126.00 to $131.00 and gave the company a “hold” rating in a research report on Wednesday, October 2nd. Finally, Royal Bank of Canada boosted their price objective on Paychex from $130.00 to $148.00 and gave the stock a “sector perform” rating in a report on Wednesday, October 2nd. Two equities research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $131.62.

Paychex 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.