Paychex (NASDAQ:PAYX) Posts Earnings Results, Beats Estimates By $0.01 EPS

Paychex (NASDAQ:PAYX) posted its earnings results on Wednesday. The business services provider reported $1.32 earnings per share for the quarter, beating 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 firm had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion.

Paychex Stock Up 2.1%

Shares of NASDAQ PAYX opened at $97.99 on Wednesday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. Paychex has a 12-month low of $85.45 and a 12-month high of $152.57. The stock has a fifty day moving average price of $95.13 and a 200 day moving average price of $99.36. The company has a market cap of $35.11 billion, a P/E ratio of 21.58 and a beta of 0.84.

Paychex Increases Dividend

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

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Guggenheim assumed coverage on Paychex in a research report on Thursday, March 19th. They issued a “neutral” rating for the company. UBS Group dropped their price objective on Paychex from $98.00 to $94.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Morgan Stanley dropped their price objective on shares of Paychex from $123.00 to $107.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 28th. Stephens reduced their price objective on shares of Paychex from $125.00 to $105.00 and set an “equal weight” rating on the stock in a report on Thursday, March 26th. Finally, Stifel Nicolaus raised their price target on shares of Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $105.07.

Institutional Investors Weigh In On Paychex

Several institutional investors and hedge funds have recently made changes to their positions in the company. Bison Wealth LLC increased its stake in Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after buying an additional 117 shares during the last quarter. Brighton Jones LLC increased its stake in shares of Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after purchasing an additional 1,190 shares in the last quarter. Summit Securities Group LLC grew its position in shares of Paychex by 1,770.9% in the fourth quarter. Summit Securities Group LLC now owns 1,029 shares of the business services provider’s stock valued at $115,000 after purchasing an additional 974 shares in the last quarter. Parsonex Advisory Services Inc. bought a new stake in shares of Paychex during the fourth quarter valued at about $201,000. Finally, Loomis Sayles & Co. L P lifted its stake in Paychex by 62.9% in the 4th quarter. Loomis Sayles & Co. L P now owns 808 shares of the business services provider’s stock worth $91,000 after purchasing an additional 312 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

Paychex Company Profile

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.