Paychex (NASDAQ:PAYX) Announces Quarterly Earnings Results

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

Paychex Price Performance

Shares of NASDAQ:PAYX traded up $0.46 during trading on Tuesday, reaching $122.08. 5,002,989 shares of the company’s stock traded hands, compared to its average volume of 1,748,822. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.23. Paychex has a fifty-two week low of $104.09 and a fifty-two week high of $129.70. The company has a 50-day simple moving average of $121.99 and a 200-day simple moving average of $119.57. The firm has a market cap of $43.93 billion, a PE ratio of 27.13, a P/E/G ratio of 3.32 and a beta of 0.93.

Paychex Dividend Announcement

The company 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 dividend on an annualized basis and a yield of 2.92%. Paychex’s payout ratio is 79.11%.

Analysts Set New Price Targets

Several equities analysts recently commented on PAYX shares. Stifel Nicolaus increased their price objective 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. TD Cowen reissued a “market perform” rating and set a $123.00 price objective (down from $132.00) on shares of Paychex in a report on Friday, December 22nd. Citigroup reduced their target price on Paychex from $130.00 to $125.00 and set a “neutral” rating for the company in a research note on Tuesday, December 26th. Barclays dropped their price target on Paychex from $126.00 to $120.00 and set an “equal weight” rating on the stock in a research note on Friday, December 22nd. Finally, Evercore ISI reissued an “in-line” rating and issued a $118.00 price objective on shares of Paychex in a report on Tuesday, March 26th. Two research analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to MarketBeat.com, Paychex presently has an average rating of “Hold” and an average target price of $122.77.

Read Our Latest Stock Analysis on Paychex

Insider Buying and Selling

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of the business’s stock in a transaction that occurred 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 directly owns 82,690 shares in the company, valued at approximately $9,966,625.70. The transaction was disclosed in a document filed with the SEC, which is available through this link. 11.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Paychex

A number of institutional investors have recently added to or reduced their stakes in the stock. Moneta Group Investment Advisors LLC boosted its holdings in Paychex by 102,768.9% in the 4th quarter. Moneta Group Investment Advisors LLC now owns 4,537,548 shares of the business services provider’s stock valued at $524,359,000 after purchasing an additional 4,533,137 shares during the last quarter. Barclays PLC raised its position in shares of Paychex by 50.2% during the 4th quarter. Barclays PLC now owns 2,011,719 shares of the business services provider’s stock valued at $239,617,000 after buying an additional 672,361 shares during the period. Legal & General Group Plc lifted its holdings in Paychex by 21.4% in the fourth quarter. Legal & General Group Plc now owns 3,176,154 shares of the business services provider’s stock valued at $378,312,000 after acquiring an additional 558,949 shares during the last quarter. Select Equity Group L.P. grew its position in Paychex by 31.1% in the first quarter. Select Equity Group L.P. now owns 2,130,610 shares of the business services provider’s stock worth $244,147,000 after acquiring an additional 505,812 shares during the period. Finally, Vanguard Group Inc. increased its stake in Paychex by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 30,418,038 shares of the business services provider’s stock worth $3,623,093,000 after acquiring an additional 487,031 shares during the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Paychex announced that its board has initiated a stock repurchase program on Friday, January 19th that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the business services provider to purchase up to 0.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

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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