FY2025 Earnings Estimate for Paychex Issued By William Blair

Paychex, Inc. (NASDAQ:PAYX) – Stock analysts at William Blair increased their FY2025 earnings estimates for Paychex in a research note issued to investors on Thursday, December 19th. William Blair analyst A. Nicholas now forecasts that the business services provider will post earnings of $5.00 per share for the year, up from their prior forecast of $4.99. The consensus estimate for Paychex’s current full-year earnings is $4.98 per share. William Blair also issued estimates for Paychex’s Q4 2025 earnings at $1.21 EPS and Q1 2026 earnings at $1.23 EPS.

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

PAYX has been the topic of several other reports. Citigroup increased their target price on Paychex from $125.00 to $145.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. JPMorgan Chase & Co. upped their price objective on shares of Paychex from $133.00 to $139.00 and gave the stock an “underweight” rating in a research report on Tuesday, November 19th. Royal Bank of Canada restated a “sector perform” rating and issued a $148.00 target price on shares of Paychex in a research report on Friday, December 20th. Morgan Stanley upped their price target on shares of Paychex from $122.00 to $133.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 2nd. Finally, Barclays boosted their price objective on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a research report on Monday. Two analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $132.23.

Paychex Price Performance

Shares of PAYX opened at $141.39 on Monday. The company’s 50-day moving average is $142.67 and its 200-day moving average is $132.90. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.38 and a quick ratio of 1.38. The firm has a market capitalization of $50.91 billion, a PE ratio of 30.15, a PEG ratio of 3.88 and a beta of 0.99. Paychex has a fifty-two week low of $114.72 and a fifty-two week high of $150.71.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 7th were paid a $0.98 dividend. The ex-dividend date was Thursday, November 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.77%. Paychex’s dividend payout ratio is 82.53%.

Insiders Place Their Bets

In related news, VP Michael E. Gioja sold 26,428 shares of the stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $139.03, for a total value of $3,674,284.84. Following the sale, the vice president now owns 14,515 shares in the company, valued at approximately $2,018,020.45. This trade represents a 64.55 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Robert L. Schrader sold 13,015 shares of the business’s stock in a transaction dated 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 transaction, the chief financial officer now owns 17,362 shares of the company’s stock, valued at approximately $2,471,480.70. The trade was a 42.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 54,174 shares of company stock worth $7,577,231 over the last 90 days. Corporate insiders own 11.40% of the company’s stock.

Institutional Trading of Paychex

Large investors have recently modified their holdings of the business. International Assets Investment Management LLC raised its stake in Paychex by 38,655.2% in the third quarter. International Assets Investment Management LLC now owns 799,907 shares of the business services provider’s stock valued at $107,340,000 after purchasing an additional 797,843 shares in the last quarter. Barclays PLC raised its position in shares of Paychex by 46.2% during the 3rd quarter. Barclays PLC now owns 1,748,485 shares of the business services provider’s stock valued at $234,627,000 after buying an additional 552,540 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Paychex by 19.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,356,262 shares of the business services provider’s stock worth $279,351,000 after acquiring an additional 384,184 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Paychex by 3.8% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 9,524,870 shares of the business services provider’s stock worth $1,278,142,000 after acquiring an additional 345,682 shares during the last quarter. Finally, Unigestion Holding SA increased its stake in Paychex by 2,139.2% in the third quarter. Unigestion Holding SA now owns 295,692 shares of the business services provider’s stock valued at $39,667,000 after acquiring an additional 282,487 shares during the last quarter. Institutional investors own 83.47% 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.