Paychex (NASDAQ:PAYX) Updates FY 2025 Earnings Guidance

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

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on PAYX shares. JPMorgan Chase & Co. raised their price target on shares of Paychex from $133.00 to $139.00 and gave the company an “underweight” rating in a research note on Tuesday, November 19th. UBS Group boosted their target price on shares of Paychex from $125.00 to $142.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 2nd. Stifel Nicolaus raised their price objective on Paychex from $130.00 to $141.00 and gave the company a “hold” rating in a report on Wednesday, October 2nd. Royal Bank of Canada upped their target price on Paychex from $130.00 to $148.00 and gave the stock a “sector perform” rating in a report on Wednesday, October 2nd. Finally, Jefferies Financial Group lifted their price target on Paychex from $120.00 to $130.00 and gave the company a “hold” rating in a research note on Wednesday, October 2nd. Two investment analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $131.62.

Paychex Stock Up 2.5 %

PAYX stock traded up $3.38 during trading on Thursday, reaching $139.24. 1,240,704 shares of the stock were exchanged, compared to its average volume of 1,788,411. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.21. Paychex has a twelve month low of $114.72 and a twelve month high of $150.71. The firm’s 50 day moving average is $142.74 and its 200 day moving average is $132.45. The firm has a market cap of $50.11 billion, a P/E ratio of 29.69, a price-to-earnings-growth ratio of 3.88 and a beta of 0.99.

Paychex (NASDAQ:PAYX) last issued its earnings results 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%. Paychex’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period last year, the business earned $1.08 EPS. As a group, research analysts forecast that Paychex will post 4.98 EPS for the current year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 7th were given a $0.98 dividend. The ex-dividend date was Thursday, November 7th. This represents a $3.92 annualized dividend and a yield of 2.82%. Paychex’s payout ratio is 83.58%.

Insider Transactions at Paychex

In related news, VP Michael E. Gioja sold 14,731 shares of the stock in a transaction that occurred on Friday, October 4th. The stock was sold at an average price of $139.18, for a total transaction of $2,050,260.58. Following the completion of the sale, the vice president now directly owns 14,515 shares of the company’s stock, valued at approximately $2,020,197.70. This trade represents a 50.37 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert L. Schrader sold 13,015 shares of the business’s stock in a transaction on 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 completion of the transaction, the chief financial officer now directly owns 17,362 shares in the company, valued at approximately $2,471,480.70. This represents a 42.84 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 54,174 shares of company stock valued at $7,577,231 over the last ninety days. 11.40% of the stock is currently owned by insiders.

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.