Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Wednesday. The company provided earnings per share guidance of $4.96-5.05 for the period, compared to the consensus earnings per share estimate of $4.99. 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.

Analyst Upgrades and Downgrades

PAYX has been the topic of several recent research reports. UBS Group raised their price target on Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a report on Tuesday, March 4th. Royal Bank of Canada restated a “sector perform” rating and issued a $148.00 price objective on shares of Paychex in a report on Friday, December 20th. Finally, Barclays upped their target price on shares of Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research report on Monday, December 23rd. Two investment analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $133.23.

Paychex Price Performance

Shares of PAYX opened at $144.13 on Wednesday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $51.90 billion, a PE ratio of 30.34, a P/E/G ratio of 4.10 and a beta of 0.98. The stock has a 50 day simple moving average of $147.91 and a 200 day simple moving average of $142.99. Paychex has a 52-week low of $114.72 and a 52-week high of $158.37.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, March 26th. The business services provider reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.01. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.51 billion. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The firm’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.38 earnings per share. Sell-side analysts predict that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Investors of record on Friday, February 7th were given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 2.72%. The ex-dividend date was Friday, February 7th. Paychex’s dividend payout ratio is presently 82.53%.

Institutional Trading of Paychex

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC boosted its position in shares of Paychex, Inc. (NASDAQ:PAYX) by 26.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,710 shares of the business services provider’s stock after acquiring an additional 1,190 shares during the quarter. Brighton Jones LLC’s holdings in Paychex were worth $801,000 at the end of the most recent reporting period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

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.