Paychex, Inc. (NASDAQ:PAYX) Expected to Post Quarterly Sales of $1.11 Billion

Equities research analysts expect Paychex, Inc. (NASDAQ:PAYXGet Rating) to post $1.11 billion in sales for the current fiscal quarter, Zacks reports. Seven analysts have issued estimates for Paychex’s earnings. The highest sales estimate is $1.15 billion and the lowest is $1.10 billion. Paychex reported sales of $1.03 billion in the same quarter last year, which indicates a positive year over year growth rate of 7.8%. The company is scheduled to announce its next earnings results on Monday, January 1st.

According to Zacks, analysts expect that Paychex will report full year sales of $4.58 billion for the current financial year, with estimates ranging from $4.56 billion to $4.62 billion. For the next fiscal year, analysts expect that the business will report sales of $4.91 billion, with estimates ranging from $4.86 billion to $5.00 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover Paychex.

Paychex (NASDAQ:PAYXGet Rating) last released its quarterly earnings results on Wednesday, March 30th. The business services provider reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.11. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. Paychex had a return on equity of 43.02% and a net margin of 30.23%. The firm’s quarterly revenue was up 14.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.96 EPS.

A number of analysts have recently weighed in on PAYX shares. Bank of America upgraded Paychex from an “underperform” rating to a “neutral” rating and set a $125.00 target price for the company in a research report on Wednesday, March 9th. Morgan Stanley upped their target price on Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research report on Thursday, March 31st. Citigroup upped their target price on Paychex from $140.00 to $145.00 and gave the company a “neutral” rating in a research report on Wednesday, April 6th. Robert W. Baird upped their target price on Paychex from $137.00 to $142.00 in a research report on Thursday, March 31st. Finally, Jefferies Financial Group cut their target price on Paychex from $140.00 to $130.00 in a research report on Monday, May 23rd. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $128.21.

PAYX opened at $125.95 on Friday. The business has a fifty day simple moving average of $128.88 and a 200 day simple moving average of $125.35. The company has a market capitalization of $45.47 billion, a PE ratio of 33.59, a price-to-earnings-growth ratio of 4.40 and a beta of 0.98. Paychex has a 1 year low of $100.69 and a 1 year high of $141.92. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.27 and a quick ratio of 1.27.

The company also recently announced a quarterly dividend, which was paid on Thursday, May 26th. Shareholders of record on Thursday, May 12th were issued a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a yield of 2.51%. The ex-dividend date of this dividend was Wednesday, May 11th. This is a boost from Paychex’s previous quarterly dividend of $0.66. Paychex’s dividend payout ratio is presently 84.27%.

In other Paychex news, VP Michael E. Gioja sold 26,000 shares of the company’s stock in a transaction dated Tuesday, April 5th. The stock was sold at an average price of $141.26, for a total value of $3,672,760.00. Following the sale, the vice president now owns 52,349 shares in the company, valued at approximately $7,394,819.74. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Karen E. Saunders-Mcclendon sold 203 shares of the company’s stock in a transaction dated Friday, April 15th. The shares were sold at an average price of $136.69, for a total value of $27,748.07. Following the completion of the sale, the vice president now owns 2,994 shares in the company, valued at approximately $409,249.86. The disclosure for this sale can be found here. 11.50% of the stock is owned by corporate insiders.

Several institutional investors have recently made changes to their positions in the stock. American National Bank boosted its position in shares of Paychex by 31.4% during the 1st quarter. American National Bank now owns 310 shares of the business services provider’s stock valued at $42,000 after purchasing an additional 74 shares in the last quarter. Boenning & Scattergood Inc. boosted its position in shares of Paychex by 1.2% during the 1st quarter. Boenning & Scattergood Inc. now owns 6,395 shares of the business services provider’s stock valued at $873,000 after purchasing an additional 74 shares in the last quarter. Concord Wealth Partners boosted its position in shares of Paychex by 15.8% during the 1st quarter. Concord Wealth Partners now owns 564 shares of the business services provider’s stock valued at $77,000 after purchasing an additional 77 shares in the last quarter. Cornell Pochily Investment Advisors Inc. boosted its position in shares of Paychex by 0.4% during the 1st quarter. Cornell Pochily Investment Advisors Inc. now owns 17,695 shares of the business services provider’s stock valued at $2,415,000 after purchasing an additional 78 shares in the last quarter. Finally, Benjamin Edwards Inc. boosted its position in shares of Paychex by 1.5% during the 1st quarter. Benjamin Edwards Inc. now owns 5,216 shares of the business services provider’s stock valued at $712,000 after purchasing an additional 79 shares in the last quarter. Institutional investors own 80.43% of the company’s stock.

Paychex Company Profile (Get Rating)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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