Paychex (NASDAQ:PAYX) Announces Quarterly Earnings Results

Paychex (NASDAQ:PAYX) posted its quarterly earnings results on Thursday. The business services provider reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.09, Briefing.com reports. The firm had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.04 billion. Paychex had a net margin of 27.05% and a return on equity of 38.04%. The business’s revenue was up 16.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.63 earnings per share. Paychex updated its FY 2022 guidance to $3.410-$3.470 EPS.

Shares of NASDAQ:PAYX traded up $4.69 during trading on Thursday, reaching $112.54. The company had a trading volume of 45,138 shares, compared to its average volume of 1,639,674. The company has a fifty day moving average of $112.83 and a two-hundred day moving average of $105.65. The stock has a market capitalization of $40.58 billion, a P/E ratio of 37.47, a price-to-earnings-growth ratio of 4.09 and a beta of 0.91. Paychex has a 12 month low of $78.00 and a 12 month high of $118.22. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.27.

The business also recently declared a quarterly dividend, which was paid on Thursday, August 26th. Stockholders of record on Monday, August 2nd were issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 2.35%. The ex-dividend date of this dividend was Friday, July 30th. Paychex’s payout ratio is 86.84%.

Several equities research analysts have recently commented on the stock. Morgan Stanley boosted their target price on shares of Paychex from $90.00 to $97.00 and gave the stock an “equal weight” rating in a research report on Monday, June 28th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Paychex from $98.00 to $103.00 and gave the stock a “hold” rating in a report on Monday, June 28th. Argus boosted their target price on shares of Paychex from $106.00 to $118.00 and gave the company a “buy” rating in a research note on Monday, June 28th. JPMorgan Chase & Co. boosted their price target on shares of Paychex from $105.00 to $111.00 and gave the company an “underweight” rating in a research report on Tuesday, August 17th. Finally, Wolfe Research boosted their price target on shares of Paychex from $94.00 to $105.00 and gave the company an “underperform” rating in a research report on Friday, July 2nd. Three analysts have rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $105.29.

Paychex declared that its Board of Directors has approved a share buyback program on Thursday, July 8th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

In other news, VP Robert L. Schrader sold 686 shares of the company’s stock in a transaction on Sunday, August 1st. The shares were sold at an average price of $113.82, for a total value of $78,080.52. Following the completion of the sale, the vice president now owns 12,411 shares of the company’s stock, valued at approximately $1,412,620.02. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Efrain Rivera sold 419 shares of the company’s stock in a transaction on Friday, July 9th. The shares were sold at an average price of $111.90, for a total transaction of $46,886.10. The disclosure for this sale can be found here. Insiders sold a total of 283,467 shares of company stock worth $31,877,536 in the last three months. Insiders own 11.70% of the company’s stock.

Paychex Company Profile

Paychex, Inc engages in the provision of human capital management solutions for payroll, human resource, insurance and retirement for small and medium sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services.

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Earnings History for Paychex (NASDAQ:PAYX)

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