Paychex (NASDAQ:PAYX) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Paychex (NASDAQ:PAYX) released its quarterly earnings results on Tuesday. The business services provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.02, Briefing.com reports. The business had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Paychex had a return on equity of 45.01% and a net margin of 29.75%.The firm’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same period last year, the firm posted $1.16 EPS. Paychex updated its FY 2026 guidance to 5.428-5.528 EPS.

Paychex Price Performance

PAYX stock traded down $5.38 during midday trading on Tuesday, reaching $123.15. 2,431,357 shares of the stock were exchanged, compared to its average volume of 2,239,605. The stock has a market capitalization of $44.29 billion, a PE ratio of 27.18, a P/E/G ratio of 2.94 and a beta of 0.91. Paychex has a 52 week low of $119.02 and a 52 week high of $161.24. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.28 and a quick ratio of 1.28. The company has a fifty day moving average price of $137.37 and a 200 day moving average price of $144.99.

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, July 21st were given a dividend of $1.08 per share. The ex-dividend date was Monday, July 21st. This represents a $4.32 dividend on an annualized basis and a yield of 3.5%. Paychex’s payout ratio is currently 94.53%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Citigroup dropped their price target on Paychex from $158.00 to $148.00 and set a “neutral” rating for the company in a report on Thursday, August 21st. Royal Bank Of Canada set a $165.00 price target on Paychex and gave the stock a “sector perform” rating in a report on Tuesday, June 24th. JPMorgan Chase & Co. raised their price objective on Paychex from $148.00 to $153.00 and gave the stock an “underweight” rating in a research note on Thursday, August 14th. UBS Group lowered their price objective on Paychex from $148.00 to $140.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 17th. Finally, Morgan Stanley lowered their price objective on Paychex from $150.00 to $148.00 and set an “equal weight” rating on the stock in a research note on Friday, June 27th. Ten equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $145.91.

Insiders Place Their Bets

In related news, CEO John B. Gibson sold 12,370 shares of the business’s stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the sale, the chief executive officer owned 81,755 shares in the company, valued at $11,602,669.60. The trade was a 13.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Chairman Martin Mucci sold 97,526 shares of the business’s stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $145.17, for a total value of $14,157,849.42. Following the sale, the chairman owned 446,917 shares in the company, valued at $64,878,940.89. This represents a 17.91% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.80% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PAYX. Geneos Wealth Management Inc. raised its stake in shares of Paychex by 106.4% in the second quarter. Geneos Wealth Management Inc. now owns 5,807 shares of the business services provider’s stock worth $845,000 after purchasing an additional 2,994 shares during the last quarter. Evergreen Capital Management LLC grew its holdings in Paychex by 28.7% during the second quarter. Evergreen Capital Management LLC now owns 8,743 shares of the business services provider’s stock valued at $1,272,000 after purchasing an additional 1,950 shares during the period. 44 Wealth Management LLC grew its holdings in Paychex by 2.7% during the second quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after purchasing an additional 86 shares during the period. MUFG Securities EMEA plc purchased a new stake in shares of Paychex during the second quarter worth $137,000. Finally, Blue Chip Partners LLC bought a new stake in Paychex during the second quarter valued at $200,000. 83.47% of the stock is owned by institutional investors and hedge funds.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), 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.