Paychex (NASDAQ:PAYX) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Paychex (NASDAQ:PAYX) posted its quarterly earnings data on Tuesday. The business services provider reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.01, Briefing.com reports. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.46 billion. Paychex had a return on equity of 46.37% and a net margin of 31.62%. The company’s revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.29 earnings per share. Paychex updated its FY 2024 guidance to 4.700-4.740 EPS.

Paychex Trading Up 0.4 %

Shares of PAYX stock opened at $122.08 on Wednesday. Paychex has a fifty-two week low of $104.09 and a fifty-two week high of $129.70. The stock has a market cap of $43.93 billion, a P/E ratio of 27.13, a P/E/G ratio of 3.29 and a beta of 0.93. The business has a fifty day simple moving average of $121.99 and a 200-day simple moving average of $119.57. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.23.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 27th. Stockholders of record on Tuesday, February 13th were given a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 2.92%. The ex-dividend date was Monday, February 12th. Paychex’s dividend payout ratio is currently 79.11%.

Insider Activity

In other news, VP Mark Anthony Bottini sold 15,481 shares of the firm’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $120.53, for a total value of $1,865,924.93. Following the completion of the transaction, the vice president now owns 82,690 shares in the company, valued at $9,966,625.70. The sale was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 11.50% of the company’s stock.

Institutional Trading of Paychex

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. West Tower Group LLC increased its position in Paychex by 112.8% during 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 purchased a new stake in Paychex during the 2nd quarter worth about $34,000. ICA Group Wealth Management LLC purchased a new stake in Paychex during the 4th quarter worth about $49,000. Resurgent Financial Advisors LLC acquired a new stake in Paychex in the 4th quarter worth about $51,000. Finally, Fortis Capital Advisors LLC acquired a new stake in Paychex in the 4th quarter worth about $58,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PAYX. Evercore ISI reissued an “in-line” rating and issued a $118.00 price objective on shares of Paychex in a report on Tuesday, March 26th. TD Cowen reaffirmed a “market perform” rating and set a $123.00 price target (down from $132.00) on shares of Paychex in a report on Friday, December 22nd. Citigroup decreased their price target on Paychex from $130.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, December 26th. Stifel Nicolaus increased their price target on Paychex from $124.00 to $130.00 and gave the stock a “hold” rating in a report on Friday, December 22nd. Finally, JPMorgan Chase & Co. decreased their price target on Paychex from $134.00 to $126.00 and set an “underweight” rating for the company in a report on Friday, December 22nd. Two research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $122.77.

Paychex declared that its Board of Directors has authorized a share repurchase plan on Friday, January 19th that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the business services provider to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

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.