Equities research analysts expect Paychex, Inc. (NASDAQ:PAYX) to report $858.27 million in sales for the current fiscal quarter, according to Zacks. Twelve analysts have issued estimates for Paychex’s earnings, with the highest sales estimate coming in at $863.90 million and the lowest estimate coming in at $854.90 million. Paychex reported sales of $826.50 million in the same quarter last year, which would suggest a positive year-over-year growth rate of 3.8%. The business is scheduled to issue its next quarterly earnings results on Thursday, December 20th.
On average, analysts expect that Paychex will report full year sales of $3.61 billion for the current year, with estimates ranging from $3.60 billion to $3.62 billion. For the next year, analysts forecast that the firm will report sales of $3.83 billion, with estimates ranging from $3.80 billion to $3.86 billion. Zacks’ sales averages are a mean average based on a survey of sell-side research analysts that that provide coverage for Paychex.
Paychex (NASDAQ:PAYX) last issued its earnings results on Tuesday, October 2nd. The business services provider reported $0.67 EPS for the quarter, topping the consensus estimate of $0.65 by $0.02. The firm had revenue of $862.80 million during the quarter, compared to analysts’ expectations of $850.39 million. Paychex had a return on equity of 44.29% and a net margin of 27.62%. Paychex’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period last year, the business earned $0.62 earnings per share.
PAYX has been the subject of a number of analyst reports. Guggenheim initiated coverage on Paychex in a report on Monday, August 20th. They set a “neutral” rating and a $75.00 price objective for the company. BidaskClub cut Paychex from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 31st. Citigroup lifted their price objective on Paychex from $67.00 to $73.00 and gave the company a “neutral” rating in a report on Wednesday, October 3rd. Stifel Nicolaus lifted their price objective on Paychex from $66.00 to $69.00 and gave the company a “hold” rating in a report on Thursday, June 28th. Finally, Credit Suisse Group initiated coverage on Paychex in a report on Friday, August 10th. They set a “neutral” rating and a $72.00 price objective for the company. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and three have issued a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $72.93.
PAYX stock traded down $0.24 during midday trading on Monday, hitting $68.02. The stock had a trading volume of 2,246,100 shares, compared to its average volume of 2,169,853. The stock has a market cap of $26.44 billion, a P/E ratio of 26.78, a price-to-earnings-growth ratio of 3.24 and a beta of 0.95. Paychex has a 52 week low of $59.36 and a 52 week high of $76.02.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Thursday, November 1st will be issued a $0.56 dividend. The ex-dividend date of this dividend is Wednesday, October 31st. This represents a $2.24 dividend on an annualized basis and a dividend yield of 3.29%. Paychex’s dividend payout ratio is 87.84%.
In related news, VP Mark Anthony Bottini sold 30,000 shares of Paychex stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $71.03, for a total value of $2,130,900.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP John B. Gibson sold 47,250 shares of Paychex stock in a transaction dated Wednesday, September 5th. The shares were sold at an average price of $73.50, for a total value of $3,472,875.00. The disclosure for this sale can be found here. Insiders sold 108,673 shares of company stock valued at $7,843,354 over the last ninety days. 11.80% of the stock is currently owned by company insiders.
Several institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. acquired a new stake in Paychex in the second quarter worth about $83,230,000. Select Equity Group L.P. increased its position in Paychex by 12.9% in the first quarter. Select Equity Group L.P. now owns 8,689,359 shares of the business services provider’s stock worth $535,178,000 after purchasing an additional 995,527 shares during the period. Millennium Management LLC acquired a new stake in Paychex in the first quarter worth about $43,805,000. Marshall Wace LLP acquired a new stake in Paychex in the second quarter worth about $26,339,000. Finally, Donaldson Capital Management LLC increased its position in Paychex by 4,317.7% in the second quarter. Donaldson Capital Management LLC now owns 367,774 shares of the business services provider’s stock worth $25,137,000 after purchasing an additional 359,449 shares during the period. 66.99% of the stock is owned by institutional investors and hedge funds.
Paychex, Inc provides payroll, human resource (HR), retirement, and insurance services for small to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.
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