Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Thursday. 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 $5.52 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Trading Up 1.3 %

Shares of PAYX opened at $139.54 on Friday. The company’s fifty day simple moving average is $142.73 and its 200-day simple moving average is $132.62. The company has a market cap of $50.22 billion, a P/E ratio of 29.75, a P/E/G ratio of 3.88 and a beta of 0.99. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.21. Paychex has a twelve month low of $114.72 and a twelve month high of $150.71.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Thursday, December 19th. The business services provider reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.12 by $0.02. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the prior year, the business posted $1.08 earnings per share. The company’s revenue for the quarter was up 4.7% on a year-over-year basis. As a group, analysts expect that Paychex will post 4.98 EPS for the current year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 7th were paid a $0.98 dividend. The ex-dividend date was Thursday, November 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.81%. Paychex’s dividend payout ratio is currently 83.58%.

Wall Street Analyst Weigh In

PAYX has been the subject of a number of research analyst reports. Stifel Nicolaus lifted their target price on Paychex from $130.00 to $141.00 and gave the company a “hold” rating in a research report on Wednesday, October 2nd. JPMorgan Chase & Co. increased their target price on shares of Paychex from $133.00 to $139.00 and gave the stock an “underweight” rating in a report on Tuesday, November 19th. Citigroup upped their price target on shares of Paychex from $125.00 to $145.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Royal Bank of Canada reissued a “sector perform” rating and issued a $148.00 price objective on shares of Paychex in a research note on Friday. Finally, Morgan Stanley lifted their price target on Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a report on Wednesday, October 2nd. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. According to MarketBeat.com, Paychex has an average rating of “Hold” and a consensus price target of $131.62.

Insiders Place Their Bets

In related news, VP Michael E. Gioja sold 26,428 shares of the firm’s stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $139.03, for a total transaction of $3,674,284.84. Following the completion of the transaction, the vice president now owns 14,515 shares of the company’s stock, valued at $2,018,020.45. This trade represents a 64.55 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Robert L. Schrader sold 13,015 shares of Paychex stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the transaction, the chief financial officer now owns 17,362 shares of the company’s stock, valued at $2,471,480.70. The trade was a 42.84 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 54,174 shares of company stock valued at $7,577,231. 11.40% of the stock is owned by company insiders.

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.