Posted on July 15, 2021
Today’s trade is focused on the post-Batflu recovery that everyone is convinced will happen…
Specifically, we’re zeroing in on payroll, HR and benefits management company Paychex Inc. (NASDAQ:PAYX), the Rochester, N.Y. outfit that prospers when small business goes on a tear.
Only problem is there is no tear.
More of a RIP, actually, since no one wants to work these days.
That said, expectations are expectations, and that’s what’s driven the price of PAYX inexorably higher over the last six months – to the tune of nearly 45%.
And we agree.
Particularly after a survey of the fundamentals.
Apparently, insiders are asking the same question.
In the last six months, they’ve dumped a Valemax super-carrier $50 million worth of stock.
And not only them! Hedge funds have unloaded shares in a hurry, too. Since the last quarterly 13F filing, a full 20% of those hedgies holding the stock have liquidated.
May you find favor in the eyes of the Al-mighty.
Many happy returns,