Paychex (NASDAQ:PAYX) Issues FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Wednesday. The company provided EPS guidance of $4.96-5.05 for the period, compared to the consensus EPS estimate of $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.54 billion.

Analysts Set New Price Targets

A number of brokerages recently commented on PAYX. Evercore ISI restated an in-line rating and issued a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. TD Cowen cut their target price on Paychex from $122.00 to $121.00 and set a hold rating for the company in a research note on Wednesday, April 3rd. Wedbush reiterated a neutral rating and set a $115.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Royal Bank of Canada reiterated a sector perform rating and set a $130.00 price objective on shares of Paychex in a research note on Tuesday, May 21st. Finally, Bank of America increased their price objective on Paychex from $108.00 to $111.00 and gave the stock an underperform rating in a research note on Wednesday, April 3rd. Two equities research analysts have rated the stock with a sell rating and ten have assigned a hold rating to the stock. According to data from MarketBeat.com, Paychex presently has a consensus rating of Hold and a consensus price target of $123.00.

Paychex Stock Down 4.3 %

Paychex stock traded down $5.40 during midday trading on Wednesday, reaching $119.63. The stock had a trading volume of 1,266,667 shares, compared to its average volume of 1,777,985. The firm’s fifty day simple moving average is $122.43 and its 200-day simple moving average is $122.09. Paychex has a 1-year low of $106.27 and a 1-year high of $129.70. The stock has a market capitalization of $43.06 billion, a P/E ratio of 25.90, a price-to-earnings-growth ratio of 3.47 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 1.24.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.02. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.29 billion. Paychex had a return on equity of 46.14% and a net margin of 31.86%. Paychex’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.97 EPS. As a group, analysts expect that Paychex will post 4.71 EPS for the current fiscal year.

Paychex Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 30th. Investors of record on Friday, May 10th were paid a $0.98 dividend. The ex-dividend date of this dividend was Thursday, May 9th. This is an increase from Paychex’s previous quarterly dividend of $0.89. This represents a $3.92 annualized dividend and a yield of 3.28%. Paychex’s payout ratio is 85.40%.

Insider Buying and Selling at Paychex

In other news, Director David J. S. Flaschen sold 19,709 shares of the business’s stock in a transaction on Friday, May 24th. The stock was sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the completion of the transaction, the director now owns 5,383 shares of the company’s stock, valued at approximately $670,452.65. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 11.50% of the company’s stock.

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.