Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share guidance of $4.96-5.05 for the period, compared to the consensus earnings per share estimate of $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.52 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Stock Down 1.0 %

Shares of NASDAQ PAYX opened at $139.36 on Friday. The stock has a market capitalization of $50.13 billion, a P/E ratio of 29.84, a PEG ratio of 3.52 and a beta of 1.00. Paychex has a one year low of $106.27 and a one year high of $142.04. The firm’s 50 day simple moving average is $130.19 and its two-hundred day simple moving average is $124.70. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.37 and a quick ratio of 1.37.

Paychex (NASDAQ:PAYX) last issued its earnings results on Tuesday, October 1st. The business services provider reported $1.16 EPS for the quarter, topping analysts’ consensus estimates of $1.14 by $0.02. The company had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.31 billion. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The firm’s revenue was up 2.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.14 EPS. As a group, analysts expect that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 29th. Stockholders of record on Thursday, August 8th were paid 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 was Thursday, August 8th. Paychex’s dividend payout ratio (DPR) is presently 83.94%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on PAYX shares. Stifel Nicolaus increased their price target on shares of Paychex from $130.00 to $141.00 and gave the company a hold rating in a research report on Wednesday. Morgan Stanley increased their target price on shares of Paychex from $122.00 to $133.00 and gave the stock an equal weight rating in a report on Wednesday. Bank of America boosted their price target on Paychex from $111.00 to $113.00 and gave the company an underperform rating in a report on Thursday, June 27th. Robert W. Baird lowered their price target on Paychex from $126.00 to $124.00 and set a neutral rating for the company in a research report on Thursday, June 27th. Finally, UBS Group lifted their price objective on Paychex from $125.00 to $142.00 and gave the stock a neutral rating in a research report on Wednesday. Two equities research analysts have rated the stock with a sell rating and twelve have given a hold rating to the company’s stock. Based on data from MarketBeat, Paychex has a consensus rating of Hold and a consensus target price of $130.77.

Insider Activity

In other Paychex news, CEO John B. Gibson sold 12,670 shares of the company’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $119.53, for a total value of $1,514,445.10. Following the sale, the chief executive officer now owns 55,745 shares in the company, valued at $6,663,199.85. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other news, CEO John B. Gibson sold 12,670 shares of the stock in a transaction on Monday, July 15th. The stock was sold at an average price of $119.53, for a total value of $1,514,445.10. Following the sale, the chief executive officer now directly owns 55,745 shares of the company’s stock, valued at $6,663,199.85. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director David J. S. Flaschen sold 14,434 shares of Paychex stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $125.21, for a total value of $1,807,281.14. Following the completion of the transaction, the director now directly owns 5,383 shares of the company’s stock, valued at approximately $674,005.43. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,673 shares of company stock worth $5,636,085. Corporate insiders own 11.50% of the company’s stock.

Paychex Company 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.