Stephens Cuts Paychex (NASDAQ:PAYX) Price Target to $113.00

Paychex (NASDAQ:PAYX) had its price target lowered by Stephens from $132.00 to $113.00 in a research note issued to investors on Thursday. Stephens currently has an equal weight rating on the business services provider’s stock.

A number of other research analysts also recently issued reports on the stock. Bank of America reduced their price target on shares of Paychex from $450.00 to $225.00 in a research report on Wednesday, July 15th. Wells Fargo & Company boosted their price objective on shares of Paychex from $95.00 to $111.00 and gave the company an “underweight” rating in a research report on Wednesday, September 9th. Wolfe Research upgraded shares of Paychex from an “underperform” rating to a “peer perform” rating in a research note on Wednesday, September 16th. Citigroup raised their target price on shares of Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, BMO Capital Markets decreased their target price on Paychex from $118.00 to $113.00 and set a “market perform” rating for the company in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $129.12.

Paychex Price Performance

Shares of NASDAQ PAYX opened at $101.37 on Thursday. The company has a current ratio of 1.28, a quick ratio of 1.26 and a debt-to-equity ratio of 1.23. The company has a market capitalization of $36.06 billion, a price-to-earnings ratio of 20.11, a price-to-earnings-growth ratio of 2.13 and a beta of 0.82. Paychex has a twelve month low of $85.45 and a twelve month high of $130.32. The business has a 50 day simple moving average of $118.52 and a 200-day simple moving average of $104.08.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.02. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion. Paychex had a return on equity of 52.78% and a net margin of 27.35%.The firm’s revenue for the quarter was up 5.9% on a year-over-year basis. During the same period last year, the business posted $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, equities research analysts expect that Paychex will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th were paid a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is presently 97.34%.

Insider Buying and Selling

In other Paychex news, CFO Robert Schrader sold 2,600 shares of the company’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Paychex

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. State Street Corp lifted its holdings in Paychex by 2.6% in the 2nd quarter. State Street Corp now owns 14,411,341 shares of the business services provider’s stock valued at $1,417,067,000 after acquiring an additional 361,713 shares during the last quarter. Talon Private Wealth LLC acquired a new position in shares of Paychex in the 2nd quarter worth approximately $220,000. Rench Wealth Management Inc. grew its stake in shares of Paychex by 1.2% in the 2nd quarter. Rench Wealth Management Inc. now owns 56,948 shares of the business services provider’s stock worth $5,600,000 after purchasing an additional 650 shares during the last quarter. Cidel Asset Management Inc. raised its holdings in shares of Paychex by 15.2% in the 2nd quarter. Cidel Asset Management Inc. now owns 2,529 shares of the business services provider’s stock worth $249,000 after purchasing an additional 333 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC raised its holdings in shares of Paychex by 19.5% in the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 13,720 shares of the business services provider’s stock worth $1,349,000 after purchasing an additional 2,238 shares in the last quarter. 83.47% of the stock is currently owned by institutional investors.

Key Headlines Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex reported fiscal Q1 2027 adjusted earnings of $1.34 per share, above the $1.32 analyst consensus, while revenue reached approximately $1.63 billion and increased 5.9% year over year. Wider margins and higher earnings provided fundamental support. Paychex Q1 FY27 earnings
• Positive Sentiment: Management reaffirmed its fiscal 2027 outlook and highlighted faster PEO conversions, expanding artificial-intelligence adoption, and expected PEO and insurance growth of 7% to 8%. Paychex guidance update
• Positive Sentiment: Some analysts still view the selloff as an attractive entry point. RBC maintained a Sector Perform rating with a $130 target, while JPMorgan upgraded Paychex from Underweight to Neutral and raised its target to $115.
• Neutral Sentiment: Several analysts lowered their price targets following the results, including Stephens to $113, Stifel to $112, Jefferies to $110, and UBS to $115. These firms retained neutral, equal-weight, or hold ratings, suggesting valuation upside but limited near-term conviction.
• Neutral Sentiment: Paychex’s dividend remains an investor focus after the stock’s double-digit recent decline; coverage of the payout is being assessed through the company’s cash flow and earnings outlook.
• Negative Sentiment: The main pressure is decelerating growth. Analysts expect second-quarter revenue of roughly $1.6 billion, implying growth of about 4%, slower than the first quarter and materially below last year’s pace. Why Paychex stock slumped
• Negative Sentiment: The earnings beat and maintained guidance were insufficient to offset concerns about slowing sales momentum, leading to a sharp post-earnings selloff and continued investor caution.

About Paychex

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.