Paychex (NASDAQ:PAYX) Releases Earnings Results, Beats Estimates By $0.02 EPS

Paychex (NASDAQ:PAYX) issued its quarterly earnings results on Wednesday. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.02, FiscalAI reports. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion.

Paychex Stock Down 0.4%

Shares of Paychex stock opened at $114.53 on Wednesday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex has a 1-year low of $85.45 and a 1-year high of $130.64. The business has a 50-day moving average of $119.15 and a 200-day moving average of $104.05. The company has a market capitalization of $40.74 billion, a PE ratio of 23.42, a P/E/G ratio of 2.41 and a beta of 0.82.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is presently 97.34%.

Insiders Place Their Bets

In related news, Director Joseph Tucci sold 3,907 shares of Paychex stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Robert Schrader sold 2,600 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th. Cantor Fitzgerald reaffirmed an “underweight” rating and issued a $107.00 target price on shares of Paychex in a research note on Monday, July 20th. Bank of America reduced their price target on Paychex from $450.00 to $225.00 in a research note on Wednesday, July 15th. Wolfe Research raised Paychex from an “underperform” rating to a “peer perform” rating in a research note on Wednesday, September 16th. Finally, TD Cowen lifted their price target on Paychex from $98.00 to $117.00 and gave the company a “hold” rating in a report on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $126.76.

Paychex Company Profile

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.