Paychex (NASDAQ:PAYX) Issues Earnings Results, Beats Estimates By $0.02 EPS

Paychex (NASDAQ:PAYX) announced its quarterly earnings data on Wednesday. The business services provider reported $1.12 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 during the quarter, compared to the consensus estimate of $1.29 billion. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The company’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.97 earnings per share. Paychex updated its FY25 guidance to $4.96-5.05 EPS.

Paychex Stock Down 5.0 %

NASDAQ PAYX traded down $6.28 on Wednesday, reaching $118.75. The company had a trading volume of 1,418,516 shares, compared to its average volume of 1,779,230. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $42.75 billion, a P/E ratio of 25.87, a P/E/G ratio of 3.47 and a beta of 0.96. The company’s fifty day moving average is $122.43 and its 200 day moving average is $122.09. Paychex has a 52-week low of $106.27 and a 52-week high of $129.70.

Paychex Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 30th. Stockholders of record on Friday, May 10th were issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 3.30%. The ex-dividend date of this dividend was Thursday, May 9th. This is a positive change from Paychex’s previous quarterly dividend of $0.89. Paychex’s dividend payout ratio (DPR) is currently 85.40%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Evercore ISI reissued an “in-line” rating and issued a $118.00 price objective on shares of Paychex in a research note on Tuesday, March 26th. Royal Bank of Canada reissued a “sector perform” rating and set a $130.00 price objective on shares of Paychex in a report on Tuesday, May 21st. TD Cowen lowered their target price on Paychex from $122.00 to $121.00 and set a “hold” rating for the company in a report on Wednesday, April 3rd. Bank of America lifted their price target on Paychex from $108.00 to $111.00 and gave the company an “underperform” rating in a research note on Wednesday, April 3rd. Finally, Wedbush reaffirmed a “neutral” rating and issued a $115.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Two equities research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company’s stock. Based on data from MarketBeat, Paychex presently has an average rating of “Hold” and an average target price of $123.00.

Insider Activity

In other news, Director David J. S. Flaschen sold 19,709 shares of the company’s stock in a transaction that occurred on Friday, May 24th. The stock was sold at an average price of $124.55, for a total value of $2,454,755.95. Following the completion of the transaction, the director now directly owns 5,383 shares of the company’s stock, valued at $670,452.65. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 11.50% of the stock is currently owned by corporate insiders.

Paychex Company Profile

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.