Paychex (NASDAQ:PAYX) Announces Quarterly Earnings Results

Paychex (NASDAQ:PAYX) announced its earnings results on Wednesday. The business services provider reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.02, Briefing.com reports. The business had revenue of $1.30 billion for 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 business’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.97 EPS. Paychex updated its FY25 guidance to $4.96-5.05 EPS and its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Stock Up 0.4 %

Shares of NASDAQ PAYX opened at $117.84 on Friday. Paychex has a 1 year low of $106.27 and a 1 year high of $129.70. The firm’s 50 day moving average price is $122.40 and its 200 day moving average price is $122.06. The firm has a market cap of $42.42 billion, a P/E ratio of 25.23, a price-to-earnings-growth ratio of 3.24 and a beta of 0.96. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.37.

Paychex Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 30th. Stockholders of record on Friday, May 10th were paid a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 3.33%. This is a boost from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date of this dividend was Thursday, May 9th. Paychex’s dividend payout ratio (DPR) is 83.94%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on PAYX shares. Morgan Stanley lowered their price objective on Paychex from $125.00 to $122.00 and set an “equal weight” rating for the company in a research report on Thursday. Evercore ISI reiterated an “in-line” rating and set a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. Bank of America increased their target price on shares of Paychex from $111.00 to $113.00 and gave the stock an “underperform” rating in a research note on Thursday. Wedbush reiterated a “neutral” rating and set a $115.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada reiterated a “sector perform” rating and set a $130.00 target price on shares of Paychex in a research note on Thursday. Two analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $122.62.

Insider Buying and Selling

In related news, Director David J. S. Flaschen sold 19,709 shares of the firm’s stock in a transaction that occurred on Friday, May 24th. The shares were sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the sale, the director now owns 5,383 shares in the company, valued at $670,452.65. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 11.50% of the stock is owned by company insiders.

About 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. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.