FY2025 Earnings Forecast for Paychex Issued By William Blair

Paychex, Inc. (NASDAQ:PAYX) – Investment analysts at William Blair boosted their FY2025 earnings estimates for shares of Paychex in a report issued on Thursday, December 19th. William Blair analyst A. Nicholas now forecasts that the business services provider will earn $5.00 per share for the year, up from their prior estimate of $4.99. The consensus estimate for Paychex’s current full-year earnings is $4.98 per share. William Blair also issued estimates for Paychex’s Q4 2025 earnings at $1.21 EPS and Q1 2026 earnings at $1.23 EPS.

A number of other equities research analysts have also recently issued reports on PAYX. UBS Group upped their price objective on Paychex from $125.00 to $142.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 2nd. JPMorgan Chase & Co. increased their price target on shares of Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a report on Tuesday, November 19th. Royal Bank of Canada restated a “sector perform” rating and set a $148.00 price objective on shares of Paychex in a report on Friday. TD Cowen increased their target price on Paychex from $126.00 to $131.00 and gave the stock a “hold” rating in a research note on Wednesday, October 2nd. Finally, Barclays lifted their price target on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a report on Monday. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $132.23.

Paychex Stock Performance

Shares of PAYX opened at $139.34 on Monday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.38 and a current ratio of 1.38. The firm has a market cap of $50.17 billion, a P/E ratio of 29.71, a PEG ratio of 3.88 and a beta of 0.99. Paychex has a twelve month low of $114.72 and a twelve month high of $150.71. The firm’s 50 day moving average price is $142.73 and its two-hundred day moving average price is $132.78.

Paychex (NASDAQ:PAYX) last posted its earnings results on Thursday, December 19th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.02. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.31 billion. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.08 EPS.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Stockholders of record on Thursday, November 7th were given a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 2.81%. The ex-dividend date of this dividend was Thursday, November 7th. Paychex’s payout ratio is presently 82.53%.

Insider Activity

In related news, CFO Robert L. Schrader sold 13,015 shares of the firm’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $142.35, for a total value of $1,852,685.25. Following the sale, the chief financial officer now directly owns 17,362 shares of the company’s stock, valued at $2,471,480.70. This trade represents a 42.84 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Michael E. Gioja sold 26,428 shares of the business’s stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $139.03, for a total value of $3,674,284.84. Following the transaction, the vice president now directly owns 14,515 shares of the company’s stock, valued at approximately $2,018,020.45. The trade was a 64.55 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 54,174 shares of company stock worth $7,577,231. 11.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Paychex

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. boosted its position in Paychex by 286.0% in the second quarter. Meeder Asset Management Inc. now owns 220 shares of the business services provider’s stock valued at $26,000 after buying an additional 163 shares in the last quarter. Strategic Financial Concepts LLC bought a new position in shares of Paychex in the 2nd quarter valued at $30,000. Fortitude Family Office LLC boosted its holdings in shares of Paychex by 42.0% during the 3rd quarter. Fortitude Family Office LLC now owns 250 shares of the business services provider’s stock valued at $34,000 after acquiring an additional 74 shares in the last quarter. Quarry LP grew its position in Paychex by 152.6% during the 2nd quarter. Quarry LP now owns 293 shares of the business services provider’s stock worth $35,000 after acquiring an additional 177 shares during the last quarter. Finally, Quest Partners LLC acquired a new position in Paychex in the 3rd quarter worth about $36,000. 83.47% of the stock is owned by institutional investors.

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.