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.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on PAYX shares. Robert W. Baird reduced their price objective on Paychex from $126.00 to $124.00 and set a neutral rating for the company in a research report on Thursday, June 27th. Barclays raised their price objective on shares of Paychex from $118.00 to $132.00 and gave the stock an equal weight rating in a report on Monday, September 23rd. Jefferies Financial Group boosted their target price on shares of Paychex from $120.00 to $130.00 and gave the company a hold rating in a research report on Wednesday. JPMorgan Chase & Co. increased their price target on shares of Paychex from $120.00 to $128.00 and gave the stock an underweight rating in a research report on Tuesday, August 20th. Finally, Bank of America boosted their price objective on shares of Paychex from $111.00 to $113.00 and gave the company an underperform rating in a research report on Thursday, June 27th. Two research analysts have rated the stock with a sell rating and twelve have issued a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of Hold and a consensus price target of $130.77.

Paychex Stock Performance

NASDAQ:PAYX opened at $139.36 on Friday. The stock has a 50-day moving average price of $130.19 and a 200 day moving average price of $124.70. The stock has a market capitalization of $50.13 billion, a P/E ratio of 29.84, a P/E/G ratio of 3.52 and a beta of 1.00. Paychex has a 12-month low of $106.27 and a 12-month high of $142.04. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.21.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.14 by $0.02. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same period last year, the firm posted $1.14 EPS. The company’s revenue was up 2.5% on a year-over-year basis. Equities research analysts forecast that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 29th. Shareholders of record on Thursday, August 8th were issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend 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%.

Insider Activity

In related news, CEO John B. Gibson sold 12,670 shares of the business’s stock in a transaction dated 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 in the company, valued at $6,663,199.85. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In related news, CEO John B. Gibson sold 12,670 shares of the company’s stock in a transaction on Monday, July 15th. The shares were sold at an average price of $119.53, for a total transaction of $1,514,445.10. Following the sale, the chief executive officer now 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 through the SEC website. Also, Director David J. S. Flaschen sold 14,434 shares of Paychex stock in a transaction on Monday, August 5th. The stock was sold at an average price of $125.21, for a total transaction 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 $674,005.43. The disclosure for this sale can be found here. Insiders sold a total of 45,673 shares of company stock worth $5,636,085 over the last 90 days. 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.