Q4 2024 EPS Estimates for Paychex, Inc. (NASDAQ:PAYX) Reduced by Zacks Research

Paychex, Inc. (NASDAQ:PAYX) – Analysts at Zacks Research cut their Q4 2024 earnings estimates for shares of Paychex in a note issued to investors on Tuesday, April 16th. Zacks Research analyst R. Department now forecasts that the business services provider will post earnings of $1.10 per share for the quarter, down from their previous forecast of $1.12. The consensus estimate for Paychex’s current full-year earnings is $4.71 per share. Zacks Research also issued estimates for Paychex’s Q2 2025 earnings at $1.14 EPS, Q3 2025 earnings at $1.40 EPS, Q4 2025 earnings at $1.21 EPS, FY2025 earnings at $4.95 EPS, Q1 2026 earnings at $1.31 EPS, Q2 2026 earnings at $1.25 EPS and FY2026 earnings at $5.31 EPS.

Several other equities analysts have also recently weighed in on the company. Stifel Nicolaus lifted their price objective on Paychex from $124.00 to $130.00 and gave the company a “hold” rating in a report on Friday, December 22nd. JPMorgan Chase & Co. reduced their price objective on shares of Paychex from $134.00 to $126.00 and set an “underweight” rating for the company in a research note on Friday, December 22nd. TD Cowen lowered their target price on shares of Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a report on Wednesday, April 3rd. Royal Bank of Canada reiterated a “sector perform” rating and issued a $130.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Wedbush reiterated a “neutral” rating and issued a $115.00 price objective on shares of Paychex in a report on Wednesday, April 3rd. Two research analysts have rated the stock with a sell rating and ten have issued a hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $123.00.

Paychex Stock Performance

Shares of PAYX stock opened at $117.79 on Wednesday. The stock has a 50-day moving average of $122.10 and a 200-day moving average of $120.14. Paychex has a one year low of $104.09 and a one year high of $129.70. The stock has a market cap of $42.40 billion, a PE ratio of 25.66, a price-to-earnings-growth ratio of 3.42 and a beta of 0.93. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 1.24.

Paychex (NASDAQ:PAYX) last issued its earnings results on Tuesday, April 2nd. The business services provider reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.37 by $0.01. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm earned $1.29 EPS. The company’s revenue for the quarter was up 4.2% on a year-over-year basis.

Paychex declared that its board has initiated a stock repurchase program 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 programs are generally an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In related 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 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 Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 11.50% of the company’s stock.

Hedge Funds Weigh In On Paychex

Institutional investors have recently added to or reduced their stakes in the stock. Moneta Group Investment Advisors LLC raised its position in Paychex by 102,768.9% during the 4th quarter. Moneta Group Investment Advisors LLC now owns 4,537,548 shares of the business services provider’s stock worth $524,359,000 after purchasing an additional 4,533,137 shares during the last quarter. Capital International Investors raised its position in shares of Paychex by 9.0% during the fourth quarter. Capital International Investors now owns 18,504,389 shares of the business services provider’s stock worth $2,204,115,000 after acquiring an additional 1,523,520 shares during the last quarter. Confluence Investment Management LLC acquired a new position in shares of Paychex in the first quarter worth approximately $146,617,000. Federated Hermes Inc. lifted its stake in shares of Paychex by 337.3% in the third quarter. Federated Hermes Inc. now owns 1,544,806 shares of the business services provider’s stock worth $178,162,000 after acquiring an additional 1,191,539 shares during the period. Finally, Ameriprise Financial Inc. boosted its holdings in Paychex by 229.8% in the third quarter. Ameriprise Financial Inc. now owns 1,630,944 shares of the business services provider’s stock valued at $188,655,000 after acquiring an additional 1,136,456 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

About Paychex

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.