Paychex (NASDAQ:PAYX) Releases FY 2024 Earnings Guidance

Paychex (NASDAQ:PAYXGet Free Report) 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 Analyst Weigh In

Several equities analysts have recently weighed in on the company. JPMorgan Chase & Co. lowered their price target on Paychex from $134.00 to $126.00 and set an underweight rating on the stock in a report on Friday, December 22nd. Royal Bank of Canada reissued a sector perform rating and set a $130.00 price target on shares of Paychex in a report on Friday, December 22nd. Evercore ISI reissued an in-line rating and set a $118.00 price target on shares of Paychex in a report on Tuesday, March 26th. TD Cowen reaffirmed a market perform rating and issued a $123.00 target price (down from $132.00) on shares of Paychex in a report on Friday, December 22nd. Finally, Citigroup decreased their target price on Paychex from $130.00 to $125.00 and set a neutral rating on the stock in a report on Tuesday, December 26th. Two research analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to data from MarketBeat, the company has an average rating of Hold and a consensus price target of $122.77.

View Our Latest Report on Paychex

Paychex Price Performance

NASDAQ:PAYX opened at $122.08 on Wednesday. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.23. The business’s 50-day simple moving average is $121.99 and its two-hundred day simple moving average is $119.57. The stock has a market cap of $43.93 billion, a PE ratio of 27.13, a P/E/G ratio of 3.29 and a beta of 0.93. Paychex has a 52 week low of $104.09 and a 52 week high of $129.70.

Paychex (NASDAQ:PAYXGet Free Report) last posted its quarterly earnings results on Tuesday, April 2nd. The business services provider reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.37 by $0.01. The business had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.46 billion. Paychex had a return on equity of 46.37% and a net margin of 31.62%. The business’s quarterly revenue was up 4.2% on a year-over-year basis. During the same period last year, the firm earned $1.29 earnings per share. As a group, analysts forecast that Paychex will post 4.72 EPS for the current fiscal year.

Paychex Dividend Announcement

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

Paychex declared that its Board of Directors has authorized a share buyback 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 stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, VP Mark Anthony Bottini sold 15,481 shares of the firm’s stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $120.53, for a total transaction 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 the SEC website. Company insiders own 11.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. West Tower Group LLC grew its position in shares of Paychex by 112.8% during the fourth quarter. West Tower Group LLC now owns 232 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 123 shares in the last quarter. HWG Holdings LP purchased a new position in Paychex in the second quarter worth about $34,000. ICA Group Wealth Management LLC purchased a new position in Paychex in the fourth quarter worth about $49,000. Resurgent Financial Advisors LLC purchased a new position in Paychex in the fourth quarter worth about $51,000. Finally, Fortis Capital Advisors LLC purchased a new position in Paychex in the fourth quarter worth about $58,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

About Paychex

(Get Free Report)

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.

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Earnings History and Estimates for Paychex (NASDAQ:PAYX)

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