Zacks Research Brokers Lower Earnings Estimates for Paychex

Paychex, Inc. (NASDAQ:PAYX) – Investment analysts at Zacks Research cut their Q2 2025 earnings estimates for Paychex in a research report issued on Tuesday, October 15th. Zacks Research analyst R. Department now expects that the business services provider will post earnings per share of $1.13 for the quarter, down from their previous forecast of $1.15. The consensus estimate for Paychex’s current full-year earnings is $4.98 per share. Zacks Research also issued estimates for Paychex’s Q3 2025 earnings at $1.48 EPS, FY2025 earnings at $4.96 EPS and Q4 2026 earnings at $1.27 EPS.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Tuesday, October 1st. The business services provider reported $1.16 EPS for the quarter, topping the consensus estimate of $1.14 by $0.02. The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.31 billion. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The firm’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.14 earnings per share.

Other analysts have also recently issued reports about the company. Morgan Stanley upped their target price on Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a report on Wednesday, October 2nd. Barclays upped their price objective on shares of Paychex from $118.00 to $132.00 and gave the company an “equal weight” rating in a report on Monday, September 23rd. TD Cowen increased their price objective on Paychex from $126.00 to $131.00 and gave the stock a “hold” rating in a research report on Wednesday, October 2nd. Robert W. Baird decreased their target price on shares of Paychex from $126.00 to $124.00 and set a “neutral” rating on the stock in a research report on Thursday, June 27th. Finally, Jefferies Financial Group upped their price target on Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a report on Wednesday, October 2nd. Two investment analysts have rated the stock with a sell rating and eleven have issued a hold rating to the stock. Based on data from MarketBeat.com, Paychex presently has an average rating of “Hold” and a consensus target price of $130.77.

Paychex Trading Up 0.0 %

PAYX opened at $142.32 on Thursday. Paychex has a 1-year low of $106.27 and a 1-year high of $144.17. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.38 and a quick ratio of 1.38. The firm has a market capitalization of $51.23 billion, a price-to-earnings ratio of 30.48, a price-to-earnings-growth ratio of 3.73 and a beta of 1.00. The company’s 50 day simple moving average is $133.02 and its two-hundred day simple moving average is $126.01.

Institutional Trading of Paychex

Several hedge funds have recently modified their holdings of PAYX. M3 Advisory Group LLC raised its position in Paychex by 5.2% in the third quarter. M3 Advisory Group LLC now owns 2,194 shares of the business services provider’s stock worth $294,000 after acquiring an additional 109 shares in the last quarter. Claro Advisors LLC increased its holdings in shares of Paychex by 15.5% in the 3rd quarter. Claro Advisors LLC now owns 11,444 shares of the business services provider’s stock valued at $1,536,000 after purchasing an additional 1,537 shares in the last quarter. V Square Quantitative Management LLC lifted its stake in shares of Paychex by 2.4% in the third quarter. V Square Quantitative Management LLC now owns 6,462 shares of the business services provider’s stock valued at $867,000 after purchasing an additional 154 shares during the period. Madrona Financial Services LLC purchased a new stake in Paychex during the third quarter worth about $206,000. Finally, Sumitomo Mitsui DS Asset Management Company Ltd grew its position in Paychex by 2.4% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 34,350 shares of the business services provider’s stock worth $4,609,000 after buying an additional 799 shares during the period. 83.47% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, CFO Robert L. Schrader sold 13,015 shares of the stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total transaction of $1,852,685.25. Following the completion of the sale, the chief financial officer now owns 17,362 shares in the company, valued at approximately $2,471,480.70. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, CFO Robert L. Schrader sold 13,015 shares of Paychex stock in a transaction on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the transaction, the chief financial officer now directly owns 17,362 shares in the company, valued at $2,471,480.70. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Mark Anthony Bottini sold 8,954 shares of the business’s stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $123.60, for a total transaction of $1,106,714.40. Following the transaction, the vice president now owns 79,232 shares in the company, valued at approximately $9,793,075.20. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 87,177 shares of company stock valued at $11,698,870. Insiders own 11.50% of the company’s stock.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 27th. Shareholders of record on Thursday, November 7th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 2.75%. The ex-dividend date of this dividend is Thursday, November 7th. Paychex’s payout ratio is currently 83.94%.

Paychex Company Profile

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.