Wall Street brokerages expect that Paychex, Inc. (NASDAQ:PAYX) will report earnings of $0.63 per share for the current fiscal quarter, Zacks Investment Research reports. Twelve analysts have provided estimates for Paychex’s earnings. The lowest EPS estimate is $0.62 and the highest is $0.64. Paychex posted earnings of $0.59 per share during the same quarter last year, which suggests a positive year over year growth rate of 6.8%. The company is expected to report its next earnings report on Thursday, December 20th.
On average, analysts expect that Paychex will report full-year earnings of $2.85 per share for the current fiscal year, with EPS estimates ranging from $2.84 to $2.86. For the next financial year, analysts anticipate that the company will report earnings of $3.08 per share, with EPS estimates ranging from $3.04 to $3.19. Zacks’ EPS averages are an average based on a survey of research firms that that provide coverage for Paychex.
Paychex (NASDAQ:PAYX) last posted its earnings results on Tuesday, October 2nd. The business services provider reported $0.67 EPS for the quarter, topping the consensus estimate of $0.65 by $0.02. The firm had revenue of $862.80 million for the quarter, compared to analyst estimates of $850.39 million. Paychex had a return on equity of 42.87% and a net margin of 27.71%. Paychex’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period last year, the company earned $0.62 earnings per share.
Several analysts have commented on the company. Wolfe Research assumed coverage on Paychex in a report on Tuesday, July 17th. They issued a “market perform” rating on the stock. Morgan Stanley raised their price objective on Paychex from $67.00 to $73.00 and gave the company an “equal weight” rating in a report on Wednesday, October 3rd. Credit Suisse Group assumed coverage on Paychex in a report on Friday, August 10th. They issued a “neutral” rating and a $72.00 price objective on the stock. BMO Capital Markets raised their price objective on Paychex from $70.00 to $77.00 and gave the company a “market perform” rating in a report on Wednesday, October 3rd. Finally, JPMorgan Chase & Co. lowered Paychex from a “neutral” rating to an “underweight” rating and set a $65.00 price objective on the stock. in a report on Tuesday, August 14th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and three have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $72.93.
In other Paychex news, VP John B. Gibson sold 47,250 shares of Paychex stock in a transaction on Wednesday, September 5th. The stock was sold at an average price of $73.50, for a total value of $3,472,875.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Joseph Doody bought 1,000 shares of Paychex stock in a transaction on Tuesday, October 23rd. The stock was acquired at an average price of $66.50 per share, for a total transaction of $66,500.00. Following the transaction, the director now directly owns 16,639 shares of the company’s stock, valued at $1,106,493.50. The disclosure for this purchase can be found here. Insiders sold 81,250 shares of company stock worth $5,885,815 in the last 90 days. Company insiders own 11.80% of the company’s stock.
A number of large investors have recently bought and sold shares of PAYX. Rehmann Capital Advisory Group grew its stake in shares of Paychex by 18.3% in the second quarter. Rehmann Capital Advisory Group now owns 4,422 shares of the business services provider’s stock valued at $302,000 after buying an additional 684 shares in the last quarter. Independence Bank of Kentucky grew its stake in shares of Paychex by 12.9% in the second quarter. Independence Bank of Kentucky now owns 6,270 shares of the business services provider’s stock valued at $429,000 after buying an additional 715 shares in the last quarter. Univest Corp of Pennsylvania grew its stake in shares of Paychex by 13.1% in the second quarter. Univest Corp of Pennsylvania now owns 6,242 shares of the business services provider’s stock valued at $427,000 after buying an additional 725 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Paychex by 1.2% in the second quarter. Envestnet Asset Management Inc. now owns 61,741 shares of the business services provider’s stock valued at $4,220,000 after buying an additional 744 shares in the last quarter. Finally, Redmond Asset Management LLC grew its stake in shares of Paychex by 9.0% in the second quarter. Redmond Asset Management LLC now owns 9,056 shares of the business services provider’s stock valued at $619,000 after buying an additional 750 shares in the last quarter. Institutional investors own 67.14% of the company’s stock.
Paychex stock opened at $64.99 on Tuesday. The stock has a market cap of $23.21 billion, a P/E ratio of 25.49, a P/E/G ratio of 2.67 and a beta of 0.95. Paychex has a 52 week low of $59.36 and a 52 week high of $76.02.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Thursday, November 1st will be given a dividend of $0.56 per share. The ex-dividend date of this dividend is Wednesday, October 31st. This represents a $2.24 dividend on an annualized basis and a yield of 3.45%. Paychex’s payout ratio is 87.84%.
Paychex, Inc provides payroll, human resource (HR), retirement, 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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