Paychex (NASDAQ:PAYX) Releases FY 2024 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2024 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 4.700-4.740 for the period, compared to the consensus estimate of 4.710. The company issued revenue guidance of $5.3 billion-$5.3 billion, compared to the consensus revenue estimate of $5.3 billion.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on PAYX. Citigroup reduced their price objective on shares of Paychex from $130.00 to $125.00 and set a neutral rating on the stock in a research note on Tuesday, December 26th. Evercore ISI reissued an in-line rating and set a $118.00 price objective on shares of Paychex in a research note on Tuesday, March 26th. Barclays reduced their price objective on shares of Paychex from $126.00 to $120.00 and set an equal weight rating on the stock in a research note on Friday, December 22nd. Stifel Nicolaus lifted their price target on shares of Paychex from $124.00 to $130.00 and gave the company a hold rating in a research note on Friday, December 22nd. Finally, Wedbush reaffirmed a neutral rating and issued a $115.00 price target on shares of Paychex in a research note on Wednesday. Two analysts have rated the stock with a sell rating and ten have issued a hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of Hold and an average target price of $123.00.

Paychex Stock Down 0.2 %

PAYX stock opened at $119.99 on Friday. The stock has a market capitalization of $43.19 billion, a P/E ratio of 26.14, a price-to-earnings-growth ratio of 3.25 and a beta of 0.93. The company has a current ratio of 1.24, a quick ratio of 1.23 and a debt-to-equity ratio of 0.21. Paychex has a 12 month low of $104.09 and a 12 month high of $129.70. The firm has a 50-day moving average price of $121.94 and a 200-day moving average price of $119.62.

Paychex (NASDAQ:PAYX) last posted its earnings results on Tuesday, April 2nd. The business services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.37 by $0.01. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The business’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.29 earnings per share. As a group, equities research analysts anticipate that Paychex will post 4.72 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 27th. Stockholders of record on Tuesday, February 13th were paid a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 2.97%. The ex-dividend date was Monday, February 12th. Paychex’s dividend payout ratio is currently 77.56%.

Paychex announced that its board has authorized a share repurchase plan on Friday, January 19th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the business services provider to reacquire up to 0.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Paychex

In other Paychex news, VP Mark Anthony Bottini sold 15,481 shares of the stock in a transaction that occurred on Monday, January 29th. The shares were sold at an average price of $120.53, for a total transaction of $1,865,924.93. Following the completion of the sale, the vice president now owns 82,690 shares of the company’s stock, valued at approximately $9,966,625.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 11.50% of the company’s stock.

Institutional Trading of Paychex

Large investors have recently modified their holdings of the stock. West Tower Group LLC lifted its holdings in shares of Paychex by 112.8% in the 4th quarter. West Tower Group LLC now owns 232 shares of the business services provider’s stock worth $28,000 after purchasing an additional 123 shares in the last quarter. HWG Holdings LP bought a new position in shares of Paychex in the 2nd quarter worth $34,000. ICA Group Wealth Management LLC bought a new position in shares of Paychex in the 4th quarter worth $49,000. Resurgent Financial Advisors LLC bought a new position in shares of Paychex in the 4th quarter worth $51,000. Finally, Fortis Capital Advisors LLC bought a new position in shares of Paychex in the 4th quarter worth $58,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Company Profile

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, 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.