Paychex, Inc. (NASDAQ:PAYX - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $144.13, but opened at $148.81. Paychex shares last traded at $151.53, with a volume of 805,658 shares.
The business services provider reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.01. The firm had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.51 billion. Paychex had a return on equity of 45.28% and a net margin of 32.02%. The business's revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the company posted $1.38 earnings per share.
Paychex Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were given a dividend of $0.98 per share. The ex-dividend date was Friday, February 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.60%. Paychex's dividend payout ratio is presently 81.67%.
Analysts Set New Price Targets
A number of brokerages recently commented on PAYX. Barclays upped their price target on shares of Paychex from $135.00 to $140.00 and gave the company an "equal weight" rating in a research note on Monday, December 23rd. UBS Group raised their price target on Paychex from $152.00 to $155.00 and gave the stock a "neutral" rating in a report on Tuesday, March 4th. Royal Bank of Canada reiterated a "sector perform" rating and set a $148.00 price objective on shares of Paychex in a research note on Friday, December 20th. Citigroup raised their target price on Paychex from $145.00 to $158.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, Stifel Nicolaus upped their price target on Paychex from $141.00 to $156.00 and gave the company a "hold" rating in a research report on Thursday. Two investment analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $137.58.
View Our Latest Stock Analysis on Paychex
Institutional Investors Weigh In On Paychex
Several hedge funds have recently bought and sold shares of PAYX. Meeder Asset Management Inc. raised its position in shares of Paychex by 220.7% during the 4th quarter. Meeder Asset Management Inc. now owns 186 shares of the business services provider's stock valued at $26,000 after buying an additional 128 shares in the last quarter. Union Bancaire Privee UBP SA bought a new stake in Paychex during the fourth quarter worth about $28,000. WealthTrak Capital Management LLC bought a new stake in Paychex during the fourth quarter worth about $28,000. Millstone Evans Group LLC purchased a new position in shares of Paychex in the 4th quarter worth about $33,000. Finally, Avion Wealth raised its holdings in shares of Paychex by 469.8% during the 4th quarter. Avion Wealth now owns 245 shares of the business services provider's stock valued at $34,000 after buying an additional 202 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.
Paychex Stock Down 0.5 %
The company has a market cap of $54.38 billion, a P/E ratio of 31.80, a P/E/G ratio of 4.10 and a beta of 0.98. The stock has a 50-day moving average of $148.22 and a two-hundred day moving average of $143.30. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.39 and a current ratio of 1.39.
About Paychex
(
Get Free Report)
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.
Further Reading
Before you consider Paychex, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Paychex wasn't on the list.
While Paychex currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy stocks are roaring. It's the hottest energy sector of the year. Cameco Corp, Paladin Energy, and BWX Technologies were all up more than 40% in 2024. The biggest market moves could still be ahead of us, and there are seven nuclear energy stocks that could rise much higher in the next several months. To unlock these tickers, enter your email address below.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
