Zacks Research Weighs in on Paychex FY2028 Earnings

Paychex, Inc. (NASDAQ:PAYX - Free Report) - Analysts at Zacks Research issued their FY2028 earnings per share estimates for Paychex in a report released on Wednesday, July 9th. Zacks Research analyst R. Department anticipates that the business services provider will post earnings per share of $6.38 for the year. The consensus estimate for Paychex's current full-year earnings is $4.99 per share.

PAYX has been the subject of a number of other research reports. BMO Capital Markets started coverage on shares of Paychex in a report on Thursday. They set a "market perform" rating and a $160.00 price target for the company. Jefferies Financial Group set a $140.00 price objective on shares of Paychex and gave the company a "hold" rating in a research report on Thursday, June 26th. Cfra Research upgraded Paychex to a "hold" rating in a research note on Thursday, March 27th. JPMorgan Chase & Co. lifted their price target on Paychex from $140.00 to $148.00 and gave the company an "underweight" rating in a research note on Wednesday, June 18th. Finally, Barclays set a $155.00 price objective on Paychex and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. One research analyst has rated the stock with a sell rating and ten have issued a hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $150.20.

Paychex Price Performance

Paychex stock traded down $2.13 during trading hours on Thursday, reaching $143.18. 1,100,217 shares of the stock were exchanged, compared to its average volume of 1,975,111. The company has a market cap of $51.57 billion, a P/E ratio of 31.28, a price-to-earnings-growth ratio of 3.34 and a beta of 0.88. The company has a current ratio of 1.28, a quick ratio of 1.39 and a debt-to-equity ratio of 1.10. Paychex has a twelve month low of $116.57 and a twelve month high of $161.24. The stock has a 50 day moving average of $152.05 and a two-hundred day moving average of $148.16.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, June 25th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.19. The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.38 billion. Paychex had a net margin of 29.75% and a return on equity of 45.01%. During the same quarter in the prior year, the business posted $1.12 EPS.

Institutional Investors Weigh In On Paychex

A number of institutional investors have recently added to or reduced their stakes in PAYX. Vanguard Group Inc. raised its position in Paychex by 0.9% during the 1st quarter. Vanguard Group Inc. now owns 31,807,843 shares of the business services provider's stock worth $4,907,314,000 after purchasing an additional 286,818 shares during the last quarter. Capital International Investors increased its stake in shares of Paychex by 0.6% in the fourth quarter. Capital International Investors now owns 26,905,031 shares of the business services provider's stock valued at $3,772,544,000 after buying an additional 166,155 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Paychex by 7.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 10,782,173 shares of the business services provider's stock valued at $1,663,474,000 after acquiring an additional 737,542 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Paychex by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 9,541,034 shares of the business services provider's stock valued at $1,339,463,000 after acquiring an additional 126,962 shares during the last quarter. Finally, Northern Trust Corp boosted its holdings in Paychex by 3.8% in the first quarter. Northern Trust Corp now owns 4,989,182 shares of the business services provider's stock valued at $769,731,000 after acquiring an additional 181,628 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Insider Activity

In other news, Director Joseph M. Velli sold 3,650 shares of the company's stock in a transaction that occurred on Tuesday, April 15th. The stock was sold at an average price of $149.25, for a total value of $544,762.50. Following the completion of the transaction, the director owned 78,455 shares of the company's stock, valued at $11,709,408.75. This represents a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 11.40% of the stock is owned by corporate insiders.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, July 21st will be given a $1.08 dividend. The ex-dividend date is Monday, July 21st. This represents a $4.32 annualized dividend and a yield of 3.02%. Paychex's dividend payout ratio is presently 94.53%.

Paychex Company Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), 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.