Paychex (NASDAQ:PAYX) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

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

Paychex Price Performance

NASDAQ PAYX traded up $0.46 on Tuesday, reaching $122.08. The company’s stock had a trading volume of 5,002,989 shares, compared to its average volume of 1,748,822. Paychex has a twelve month low of $104.09 and a twelve month high of $129.70. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.23 and a current ratio of 1.23. The firm’s 50 day moving average is $121.99 and its two-hundred day moving average is $119.57. The stock has a market cap of $43.93 billion, a PE ratio of 27.13, a PEG ratio of 3.32 and a beta of 0.93.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 27th. Shareholders of record on Tuesday, February 13th were paid a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a yield of 2.92%. The ex-dividend date was Monday, February 12th. Paychex’s payout ratio is currently 79.11%.

Insider Transactions at Paychex

In other news, VP Mark Anthony Bottini sold 15,481 shares of the stock in a transaction on Monday, January 29th. The stock was sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the completion of the sale, the vice president now owns 82,690 shares in the company, valued at approximately $9,966,625.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 11.50% of the company’s stock.

Institutional Investors Weigh In On Paychex

A number of large investors have recently made changes to their positions in PAYX. Fairfield Bush & CO. purchased a new stake in shares of Paychex in the first quarter worth approximately $269,000. Vontobel Holding Ltd. lifted its position in Paychex by 35.7% in the 1st quarter. Vontobel Holding Ltd. now owns 5,455 shares of the business services provider’s stock worth $747,000 after buying an additional 1,436 shares in the last quarter. Sei Investments Co. grew its position in shares of Paychex by 118.3% in the first quarter. Sei Investments Co. now owns 91,985 shares of the business services provider’s stock valued at $12,554,000 after purchasing an additional 49,851 shares during the last quarter. Prudential PLC acquired a new stake in Paychex during the 1st quarter worth $1,019,000. Finally, Brighton Jones LLC acquired a new stake in Paychex during the 1st quarter worth approximately $237,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex announced that its Board of Directors has authorized a stock buyback plan on Friday, January 19th that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the business services provider to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

PAYX has been the topic of a number of analyst reports. Stifel Nicolaus lifted their target price on Paychex from $124.00 to $130.00 and gave the stock a “hold” rating in a research report on Friday, December 22nd. Evercore ISI reiterated an “in-line” rating and set a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. Barclays dropped their price target on shares of Paychex from $126.00 to $120.00 and set an “equal weight” rating for the company in a research note on Friday, December 22nd. JPMorgan Chase & Co. reduced their price objective on shares of Paychex from $134.00 to $126.00 and set an “underweight” rating on the stock in a research note on Friday, December 22nd. Finally, Citigroup reduced their price target on shares of Paychex from $130.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 26th. Two investment analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to MarketBeat, Paychex has an average rating of “Hold” and a consensus price target of $122.77.

View Our Latest Research Report on Paychex

Paychex Company Profile

(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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