Paychex (NASDAQ:PAYX) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Paychex (NASDAQ:PAYX) released its quarterly earnings data on Wednesday. The business services provider reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.09, MarketWatch Earnings reports. The firm had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.04 billion. Paychex had a net margin of 27.05% and a return on equity of 38.04%. Paychex’s quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.63 earnings per share.

Shares of Paychex stock opened at $112.13 on Friday. Paychex has a 52-week low of $78.00 and a 52-week high of $118.22. The stock’s 50-day simple moving average is $112.86 and its 200 day simple moving average is $105.70. The stock has a market capitalization of $40.44 billion, a P/E ratio of 36.99, a P/E/G ratio of 4.09 and a beta of 0.91. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.25 and a current ratio of 1.25.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 26th. Investors of record on Monday, August 2nd were paid a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 2.35%. The ex-dividend date of this dividend was Friday, July 30th. Paychex’s dividend payout ratio is currently 86.84%.

Paychex announced that its Board of Directors has initiated a share buyback plan on Thursday, July 8th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Several brokerages have commented on PAYX. Stifel Nicolaus raised their price target on shares of Paychex from $114.00 to $118.00 and gave the company a “hold” rating in a research note on Thursday. JPMorgan Chase & Co. raised their price target on shares of Paychex from $105.00 to $111.00 and gave the company an “underweight” rating in a report on Tuesday, August 17th. Citigroup lifted their target price on shares of Paychex from $105.00 to $121.00 and gave the stock a “buy” rating in a report on Wednesday, June 30th. BMO Capital Markets raised their price target on shares of Paychex from $96.00 to $108.00 and gave the stock a “market perform” rating in a research report on Monday, June 28th. Finally, Argus lifted their target price on shares of Paychex from $106.00 to $118.00 and gave the company a “buy” rating in a research report on Monday, June 28th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, Paychex currently has a consensus rating of “Hold” and a consensus target price of $107.11.

In other Paychex news, Director David J. S. Flaschen sold 10,850 shares of the company’s stock in a transaction that occurred on Friday, July 16th. The stock was sold at an average price of $112.41, for a total value of $1,219,648.50. Following the completion of the sale, the director now owns 1,879 shares of the company’s stock, valued at $211,218.39. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Efrain Rivera sold 419 shares of the company’s stock in a transaction that occurred on Friday, July 9th. The stock was sold at an average price of $111.90, for a total value of $46,886.10. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 283,467 shares of company stock worth $31,877,536. Company insiders own 11.70% of the company’s stock.

About Paychex

Paychex, Inc engages in the provision of human capital management solutions for payroll, human resource, insurance and retirement for small and medium sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services.

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Earnings History for Paychex (NASDAQ:PAYX)

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