Paychex (NASDAQ:PAYX) Updates FY 2023 Earnings Guidance

Paychex (NASDAQ:PAYX – Get Rating) issued an update on its FY 2023 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $4.11-$4.15 for the period, compared to the consensus earnings per share estimate of $4.06. The company issued revenue guidance of $4.93 billion-$4.98 billion, compared to the consensus revenue estimate of $4.88 billion.

PAYX stock traded up $0.09 during midday trading on Wednesday, reaching $115.66. 3,763 shares of the company’s stock traded hands, compared to its average volume of 1,863,118. The company has a market cap of $41.76 billion, a price-to-earnings ratio of 30.10, a P/E/G ratio of 3.74 and a beta of 0.98. The firm’s fifty day moving average price is $120.84 and its 200-day moving average price is $124.63. The company has a quick ratio of 1.27, a current ratio of 1.25 and a debt-to-equity ratio of 0.26. Paychex has a 52 week low of $106.55 and a 52 week high of $141.92.

Paychex (NASDAQ:PAYX – Get Rating) last posted its quarterly earnings data on Wednesday, June 29th. The business services provider reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.02. The firm had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.11 billion. Paychex had a net margin of 30.20% and a return on equity of 43.65%. The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.72 EPS. Analysts forecast that Paychex will post 4.14 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Thursday, May 26th. Investors of record on Thursday, May 12th were issued a $0.79 dividend. This is an increase from Paychex’s previous quarterly dividend of $0.66. This represents a $3.16 dividend on an annualized basis and a dividend yield of 2.73%. The ex-dividend date was Wednesday, May 11th. Paychex’s payout ratio is 82.29%.

PAYX has been the topic of several analyst reports. Citigroup upped their price target on Paychex from $140.00 to $145.00 and gave the company a neutral rating in a research report on Wednesday, April 6th. Robert W. Baird increased their price objective on Paychex from $137.00 to $142.00 in a research note on Thursday, March 31st. Morgan Stanley dropped their price target on Paychex from $140.00 to $130.00 and set an equal weight rating for the company in a research note on Thursday, June 30th. Credit Suisse Group decreased their price objective on Paychex from $165.00 to $140.00 and set an outperform rating for the company in a report on Thursday, June 30th. Finally, Jefferies Financial Group reduced their price target on Paychex from $140.00 to $130.00 in a report on Monday, May 23rd. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of Hold and an average price target of $130.77.

In other news, VP Karen E. Saunders-Mcclendon sold 203 shares of the company’s stock in a transaction dated Friday, April 15th. The stock was sold at an average price of $136.69, for a total value of $27,748.07. Following the sale, the vice president now owns 2,994 shares in the company, valued at $409,249.86. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 11.50% of the stock is owned by corporate insiders.

A number of hedge funds have recently modified their holdings of PAYX. Centaurus Financial Inc. purchased a new position in Paychex during the first quarter worth approximately $110,000. Salem Investment Counselors Inc. lifted its position in shares of Paychex by 26.2% in the first quarter. Salem Investment Counselors Inc. now owns 891 shares of the business services provider’s stock valued at $122,000 after acquiring an additional 185 shares in the last quarter. High Net Worth Advisory Group LLC lifted its position in shares of Paychex by 65.1% in the first quarter. High Net Worth Advisory Group LLC now owns 1,271 shares of the business services provider’s stock valued at $173,000 after acquiring an additional 501 shares in the last quarter. Penserra Capital Management LLC lifted its position in shares of Paychex by 6.3% in the first quarter. Penserra Capital Management LLC now owns 1,535 shares of the business services provider’s stock valued at $209,000 after acquiring an additional 91 shares in the last quarter. Finally, Brighton Jones LLC purchased a new position in shares of Paychex in the first quarter valued at approximately $237,000. Institutional investors own 80.43% of the company’s stock.

About Paychex (Get Rating)

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 and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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