Senior Vice President of Product Development & Information Technology Michael Gioja Sold A Bunch Of Shares In Paychex

Jul 17, 2023

Stock Analysis

We wouldn't blame Paychex, Inc. (NASDAQ:PAYX) shareholders if they were a little worried about the fact that Michael Gioja, the Senior Vice President of Product Development & Information Technology recently netted about US$2.9m selling shares at an average price of US$125. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Paychex

In fact, the recent sale by Michael Gioja was the biggest sale of Paychex shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$123. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Paychex insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Paychex insiders own about US$4.7b worth of shares (which is 11% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

Insiders haven't bought Paychex stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Paychex makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Paychex has 1 warning sign we think you should be aware of.

Of course Paychex may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for Paychex?

NasdaqGS:PAYX

Paychex

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.Show more

Rewards

Trading at 4.5% below our estimate of its fair value

Earnings are forecast to grow 6.85% per year

Earnings grew by 11.8% over the past year

Risks

Significant insider selling over the past 3 months

Share Price

Market Cap

1Y Return

Further research onPaychex

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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.

Outstanding track record with excellent balance sheet and pays a dividend.