Analysts Expect Paychex, Inc. (NASDAQ:PAYX) to Post $0.60 EPS
Analysts expect Paychex, Inc. (NASDAQ:PAYX) to announce $0.60 earnings per share for the current fiscal quarter, Zacks reports. Thirteen analysts have provided estimates for Paychex’s earnings, with estimates ranging from $0.59 to $0.61. Paychex also reported earnings of $0.60 per share during the same quarter last year. The firm is expected to issue its next earnings results on Wednesday, September 27th.
On average, analysts expect that Paychex will report full-year earnings of $2.37 per share for the current year, with EPS estimates ranging from $2.35 to $2.45. For the next fiscal year, analysts forecast that the company will post earnings of $2.54 per share, with EPS estimates ranging from $2.51 to $2.56. Zacks Investment Research’s earnings per share averages are a mean average based on a survey of sell-side analysts that follow Paychex.
Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, June 28th. The business services provider reported $0.54 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.53 by $0.01. Paychex had a net margin of 25.93% and a return on equity of 42.65%. The business had revenue of $799 million during the quarter, compared to analyst estimates of $797.70 million. During the same period in the prior year, the business earned $0.49 EPS. The company’s revenue for the quarter was up 6.0% on a year-over-year basis.
A number of analysts have recently issued reports on PAYX shares. BMO Capital Markets lowered their target price on shares of Paychex from $61.00 to $60.00 and set a “market perform” rating for the company in a research note on Thursday, March 30th. Wedbush reissued a “neutral” rating and set a $61.25 target price (down from $65.00) on shares of Paychex in a research note on Tuesday, June 6th. Goldman Sachs Group, Inc. (The) lowered shares of Paychex from a “buy” rating to a “neutral” rating and lowered their target price for the company from $68.00 to $64.00 in a research note on Tuesday, June 20th. Robert W. Baird lowered their target price on shares of Paychex from $63.00 to $60.00 and set a “neutral” rating for the company in a research note on Friday, June 30th. Finally, Morgan Stanley lowered their target price on shares of Paychex from $56.00 to $55.00 and set an “underweight” rating for the company in a research note on Friday, June 30th. Five equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and one has given a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $59.16.
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In related news, VP Mark Anthony Bottini sold 35,000 shares of Paychex stock in a transaction dated Thursday, April 27th. The stock was sold at an average price of $60.01, for a total value of $2,100,350.00. Following the completion of the sale, the vice president now directly owns 47,007 shares in the company, valued at $2,820,890.07. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Laurie L. Zaucha sold 2,884 shares of Paychex stock in a transaction dated Thursday, July 6th. The shares were sold at an average price of $57.39, for a total value of $165,512.76. Following the completion of the sale, the vice president now owns 32,906 shares of the company’s stock, valued at $1,888,475.34. The disclosure for this sale can be found here. Insiders sold 148,151 shares of company stock valued at $8,604,108 over the last 90 days. 11.60% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. increased its stake in Paychex by 2,782.5% in the first quarter. BlackRock Inc. now owns 25,717,903 shares of the business services provider’s stock valued at $1,514,786,000 after buying an additional 24,825,695 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Paychex by 2.6% in the first quarter. Vanguard Group Inc. now owns 22,453,468 shares of the business services provider’s stock worth $1,322,509,000 after buying an additional 573,036 shares in the last quarter. State Street Corp increased its position in shares of Paychex by 2.2% in the first quarter. State Street Corp now owns 14,205,592 shares of the business services provider’s stock worth $836,708,000 after buying an additional 309,889 shares in the last quarter. FMR LLC increased its position in shares of Paychex by 6.3% in the first quarter. FMR LLC now owns 9,866,100 shares of the business services provider’s stock worth $581,112,000 after buying an additional 588,027 shares in the last quarter. Finally, Wells Fargo & Company MN increased its position in shares of Paychex by 1.2% in the first quarter. Wells Fargo & Company MN now owns 8,482,489 shares of the business services provider’s stock worth $499,618,000 after buying an additional 104,154 shares in the last quarter. Hedge funds and other institutional investors own 68.51% of the company’s stock.
Shares of Paychex (NASDAQ:PAYX) traded down 0.19% on Friday, reaching $57.08. 1,035,726 shares of the company’s stock traded hands. The stock has a 50-day moving average of $58.50 and a 200 day moving average of $59.49. Paychex has a 12-month low of $52.78 and a 12-month high of $63.03. The firm has a market cap of $20.51 billion, a P/E ratio of 25.37 and a beta of 0.96.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 24th. Investors of record on Tuesday, August 1st will be issued a $0.50 dividend. This is an increase from Paychex’s previous quarterly dividend of $0.46. This represents a $2.00 annualized dividend and a dividend yield of 3.50%. The ex-dividend date is Friday, July 28th.
Paychex, Inc is a provider of integrated human capital management (HCM) solutions for payroll, human resource (HR), retirement and insurance services for small- to medium-sized businesses in the United States. The Company also has operations in Germany. The Company offers services, including Payroll processing, Human Resource Services, and Accounting and Financial Services.
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