Paychex (NASDAQ:PAYX) Updates FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.960-5.050 for the period, compared to the consensus earnings per share estimate of 4.980. The company issued revenue guidance of $5.5 billion-$5.6 billion, compared to the consensus revenue estimate of $5.5 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. UBS Group raised their price target on shares of Paychex from $125.00 to $142.00 and gave the company a “neutral” rating in a research report on Wednesday, October 2nd. Jefferies Financial Group upped their price target on Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a report on Wednesday, October 2nd. JPMorgan Chase & Co. raised their price objective on Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a report on Tuesday, November 19th. Morgan Stanley boosted their price objective on Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 2nd. Finally, Citigroup lifted their price target on shares of Paychex from $125.00 to $145.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Two research analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $131.62.

Paychex Trading Up 1.3 %

PAYX opened at $139.54 on Friday. The firm has a market capitalization of $50.22 billion, a price-to-earnings ratio of 29.75, a price-to-earnings-growth ratio of 3.88 and a beta of 0.99. The company’s 50 day simple moving average is $142.73 and its two-hundred day simple moving average is $132.62. Paychex has a 1-year low of $114.72 and a 1-year high of $150.71. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.38 and a quick ratio of 1.38.

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

Paychex Dividend Announcement

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

Insiders Place Their Bets

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

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.