Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 4.960-5.050 for the period, compared to the consensus EPS 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.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $137.81 on Friday. 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 business has a 50-day moving average of $142.71 and a 200-day moving average of $132.49. The stock has a market capitalization of $49.60 billion, a price-to-earnings ratio of 29.38, 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 (NASDAQ:PAYX) last issued its quarterly earnings results on Thursday, December 19th. The business services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.12 by $0.02. The firm had revenue of $1.32 billion during 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 quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.08 earnings per share. As a group, sell-side analysts predict that Paychex will post 4.98 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 7th were issued a dividend of $0.98 per share. The ex-dividend date of this dividend was Thursday, November 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.84%. Paychex’s payout ratio is 83.58%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Barclays lifted their price objective on shares of Paychex from $118.00 to $132.00 and gave the company an “equal weight” rating in a research report on Monday, September 23rd. UBS Group lifted their price target on Paychex from $125.00 to $142.00 and gave the stock a “neutral” rating in a report on Wednesday, October 2nd. Jefferies Financial Group upped their price objective on Paychex from $120.00 to $130.00 and gave the company a “hold” rating in a research note on Wednesday, October 2nd. Citigroup lifted their target price on Paychex from $125.00 to $145.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 25th. Finally, JPMorgan Chase & Co. increased their price target on Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a research note on Tuesday, November 19th. Two investment analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. Based on data from MarketBeat.com, Paychex currently has an average rating of “Hold” and a consensus target price of $131.62.

Insider Transactions at Paychex

In other news, CFO Robert L. Schrader sold 13,015 shares of the firm’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total transaction of $1,852,685.25. Following the transaction, the chief financial officer now directly owns 17,362 shares of the company’s stock, valued at approximately $2,471,480.70. This trade represents a 42.84 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Michael E. Gioja sold 26,428 shares of Paychex stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $139.03, for a total transaction of $3,674,284.84. Following the completion of the sale, the vice president now owns 14,515 shares of the company’s stock, valued at approximately $2,018,020.45. The trade was a 64.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 54,174 shares of company stock valued at $7,577,231. 11.40% of the stock is currently owned by corporate insiders.

Paychex Company Profile

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.