Principal Financial Group Inc. Raises Stock Holdings in Paychex, Inc. (NASDAQ:PAYX)

Principal Financial Group Inc. grew its holdings in Paychex, Inc. (NASDAQ:PAYX) by 3.3% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 424,160 shares of the business services provider’s stock after buying an additional 13,702 shares during the quarter. Principal Financial Group Inc.’s holdings in Paychex were worth $56,918,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Meeder Asset Management Inc. grew its stake in Paychex by 286.0% in the 2nd quarter. Meeder Asset Management Inc. now owns 220 shares of the business services provider’s stock valued at $26,000 after acquiring an additional 163 shares during the period. Fortitude Family Office LLC lifted its holdings in Paychex by 42.0% during the third quarter. Fortitude Family Office LLC now owns 250 shares of the business services provider’s stock valued at $34,000 after purchasing an additional 74 shares in the last quarter. Quest Partners LLC acquired a new stake in shares of Paychex in the third quarter valued at about $36,000. Quarry LP increased its stake in shares of Paychex by 152.6% during the second quarter. Quarry LP now owns 293 shares of the business services provider’s stock worth $35,000 after purchasing an additional 177 shares in the last quarter. Finally, Dunhill Financial LLC increased its stake in shares of Paychex by 805.9% during the third quarter. Dunhill Financial LLC now owns 308 shares of the business services provider’s stock worth $41,000 after purchasing an additional 274 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Paychex

In related news, VP Michael E. Gioja sold 14,731 shares of the stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $139.18, for a total transaction of $2,050,260.58. Following the completion of the transaction, the vice president now owns 14,515 shares of the company’s stock, valued at approximately $2,020,197.70. This trade represents a 50.37 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Robert L. Schrader sold 13,015 shares of Paychex stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total transaction of $1,852,685.25. Following the completion of the sale, the chief financial officer now owns 17,362 shares of the company’s stock, valued at $2,471,480.70. This trade represents a 42.84 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 54,174 shares of company stock worth $7,577,231. Company insiders own 11.40% of the company’s stock.

Paychex Stock Performance

NASDAQ:PAYX opened at $139.54 on Monday. The company’s 50-day moving average is $142.73 and its two-hundred day moving average is $132.70. Paychex, Inc. has a 1-year low of $114.72 and a 1-year high of $150.71. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.38 and a quick ratio of 1.38. The firm has a market capitalization of $50.22 billion, a price-to-earnings ratio of 29.75, a PEG ratio of 3.88 and a beta of 0.99.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Thursday, December 19th. The business services provider reported $1.14 EPS for the quarter, beating analysts’ consensus estimates of $1.12 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 firm’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.08 earnings per share. Analysts forecast that Paychex, Inc. will post 4.98 EPS for the current year.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 7th were given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 2.81%. The ex-dividend date of this dividend was Thursday, November 7th. Paychex’s payout ratio is 83.58%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. UBS Group lifted their price objective on Paychex from $125.00 to $142.00 and gave the stock a “neutral” rating in a report on Wednesday, October 2nd. Jefferies Financial Group boosted their price target on Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a research report on Wednesday, October 2nd. Royal Bank of Canada restated a “sector perform” rating and issued a $148.00 price objective on shares of Paychex in a report on Friday. TD Cowen lifted their target price on shares of Paychex from $126.00 to $131.00 and gave the stock a “hold” rating in a research note on Wednesday, October 2nd. Finally, Morgan Stanley increased their target price on shares of Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 2nd. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $131.62.

About Paychex

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.