Paychex (NASDAQ:PAYX) Issues FY25 Earnings Guidance

Paychex (NASDAQ:PAYX - Get Free Report) issued an update on its FY25 earnings guidance on Thursday morning. The company provided EPS guidance of $4.96-5.05 for the period, compared to the consensus EPS estimate of $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.52 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Analyst Ratings Changes

PAYX has been the subject of several recent analyst reports. Barclays lifted their target price on shares of Paychex from $118.00 to $132.00 and gave the stock an "equal weight" rating in a research note on Monday, September 23rd. Citigroup upped their target price on Paychex from $125.00 to $145.00 and gave the company a "neutral" rating in a research note on Wednesday, September 25th. TD Cowen increased their target price on Paychex from $126.00 to $131.00 and gave the stock a "hold" rating in a research report on Wednesday, October 2nd. Stifel Nicolaus lifted their price target on Paychex from $130.00 to $141.00 and gave the company a "hold" rating in a report on Wednesday, October 2nd. Finally, Jefferies Financial Group increased their price objective on shares of Paychex from $120.00 to $130.00 and gave the stock a "hold" rating in a report on Wednesday, October 2nd. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $131.62.

Paychex Stock Up 1.4 %

PAYX traded up $1.95 during trading on Thursday, hitting $137.81. The company had a trading volume of 4,199,457 shares, compared to its average volume of 1,801,356. 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. The company has a market cap of $49.60 billion, a PE ratio of 29.38, a P/E/G ratio of 3.88 and a beta of 0.99. The business has a 50-day moving average of $142.74 and a 200-day moving average of $132.45.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Thursday, December 19th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.02. The firm 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%. Paychex's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.08 earnings per share. As a group, analysts forecast that Paychex will post 4.98 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders 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 2.84%. Paychex's payout ratio is currently 83.58%.

Insider Buying and Selling

In other Paychex news, CFO Robert L. Schrader sold 13,015 shares of Paychex stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $142.35, for a total transaction of $1,852,685.25. Following the sale, the chief financial officer now owns 17,362 shares of the company's stock, valued at $2,471,480.70. The trade was a 42.84 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 completion of the transaction, the vice president now directly 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 position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 54,174 shares of company stock valued at $7,577,231. 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.