Paychex (NASDAQ:PAYX) Issues Quarterly Earnings Results

Paychex (NASDAQ:PAYX) announced its earnings results on Wednesday. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.01, FiscalAI reports. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion.

Paychex Price Performance

PAYX stock opened at $97.99 on Wednesday. The company has a market capitalization of $35.11 billion, a P/E ratio of 21.58 and a beta of 0.84. The company has a fifty day moving average price of $95.13 and a 200-day moving average price of $99.36. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. Paychex has a 52-week low of $85.45 and a 52-week high of $152.57.

Paychex Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date of this dividend was Wednesday, May 13th. This is a boost from Paychex’s previous quarterly dividend of $1.08. Paychex’s payout ratio is currently 104.85%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. UBS Group dropped their target price on Paychex from $98.00 to $94.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Jefferies Financial Group decreased their target price on shares of Paychex from $110.00 to $105.00 and set a “hold” rating for the company in a report on Thursday, March 26th. JPMorgan Chase & Co. dropped their price objective on shares of Paychex from $125.00 to $100.00 and set an “underweight” rating on the stock in a research note on Thursday, March 26th. Robert W. Baird reduced their target price on Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a report on Thursday, March 26th. Finally, Wells Fargo & Company lowered their target price on shares of Paychex from $116.00 to $95.00 and set an “underweight” rating on the stock in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $105.07.

Hedge Funds Weigh In On Paychex

A number of hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its stake in Paychex by 26.3% in the 4th quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares during the last quarter. Bison Wealth LLC raised its position in shares of Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after acquiring an additional 117 shares in the last quarter. Woodline Partners LP purchased a new position in Paychex during the 1st quarter valued at about $3,333,000. NewEdge Advisors LLC raised its stake in Paychex by 3.2% during the second quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider’s stock valued at $5,976,000 after buying an additional 1,290 shares during the last quarter. Finally, Sei Investments Co. increased its position in shares of Paychex by 47.1% during the second quarter. Sei Investments Co. now owns 156,680 shares of the business services provider’s stock valued at $22,790,000 after acquiring an additional 50,169 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.