Paychex (NASDAQ:PAYX) Announces Earnings Results

Paychex (NASDAQ:PAYXGet Free Report) posted its quarterly earnings results on Tuesday. The business services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.37 by $0.01, Briefing.com reports. The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Paychex had a net margin of 31.62% and a return on equity of 46.37%. The business’s quarterly revenue was up 4.2% on a year-over-year basis. During the same period last year, the company posted $1.29 earnings per share. Paychex updated its FY 2024 guidance to 4.700-4.740 EPS.

Paychex Stock Up 0.4 %

Shares of NASDAQ PAYX opened at $122.08 on Wednesday. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 0.23. Paychex has a 12 month low of $104.09 and a 12 month high of $129.70. The firm has a market capitalization of $43.93 billion, a PE ratio of 27.13, a price-to-earnings-growth ratio of 3.29 and a beta of 0.93. The firm has a fifty day simple moving average of $121.99 and a two-hundred day simple moving average of $119.57.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 27th. Shareholders of record on Tuesday, February 13th were issued a $0.89 dividend. The ex-dividend date was Monday, February 12th. This represents a $3.56 annualized dividend and a yield of 2.92%. Paychex’s dividend payout ratio (DPR) is presently 79.11%.

Paychex declared that its Board of Directors has approved a stock buyback program on Friday, January 19th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the business services provider to purchase up to 0.9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of the company’s stock in a transaction on Monday, January 29th. The shares were sold at an average price of $120.53, for a total value of $1,865,924.93. Following the completion of the transaction, the vice president now directly owns 82,690 shares in the company, valued at approximately $9,966,625.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 11.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. West Tower Group LLC increased its stake in shares of Paychex by 112.8% in the 4th quarter. West Tower Group LLC now owns 232 shares of the business services provider’s stock worth $28,000 after acquiring an additional 123 shares in the last quarter. HWG Holdings LP bought a new stake in Paychex during the 2nd quarter valued at about $34,000. ICA Group Wealth Management LLC bought a new stake in Paychex during the 4th quarter valued at about $49,000. Resurgent Financial Advisors LLC bought a new stake in Paychex during the 4th quarter valued at about $51,000. Finally, Fortis Capital Advisors LLC bought a new stake in Paychex during the 4th quarter valued at about $58,000. 83.47% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

PAYX has been the topic of a number of recent research reports. Citigroup dropped their price objective on shares of Paychex from $130.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 26th. Evercore ISI reaffirmed an “in-line” rating and issued a $118.00 price objective on shares of Paychex in a research note on Tuesday, March 26th. Barclays dropped their price objective on shares of Paychex from $126.00 to $120.00 and set an “equal weight” rating on the stock in a research note on Friday, December 22nd. Stifel Nicolaus raised their price target on shares of Paychex from $124.00 to $130.00 and gave the company a “hold” rating in a research report on Friday, December 22nd. Finally, JPMorgan Chase & Co. dropped their price target on shares of Paychex from $134.00 to $126.00 and set an “underweight” rating on the stock in a research report on Friday, December 22nd. Two investment 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, the company presently has an average rating of “Hold” and an average price target of $122.77.

View Our Latest Research Report on Paychex

About Paychex

(Get Free Report)

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.

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Earnings History for Paychex (NASDAQ:PAYX)

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