Paychex (NASDAQ:PAYX) Hits New 1-Year Low – Should You Sell?

Paychex, Inc. (NASDAQ:PAYX)’s stock price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $86.84 and last traded at $88.2560, with a volume of 439098 shares trading hands. The stock had previously closed at $89.89.

Key Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks raised several forward estimates (notably FY2026 and FY2027 EPS and Q1 2028 & Q1 2027 quarter forecasts), which supports a modestly more favorable longer‑term earnings outlook for Paychex.
• Neutral Sentiment: Independent comparison/coverage pieces continue to circulate but add little directional pressure — a recent head‑to‑head analysis mentioned Paychex alongside other names without issuing a buy/sell verdict. Head-To-Head Analysis: Cellebrite DI (NASDAQ:CLBT) and Paychex (NASDAQ:PAYX)
• Negative Sentiment: Zacks also trimmed near‑term quarter estimates (Q2 2027 and Q2 2028 forecasts were reduced), signaling caution about Paychex’s short‑term growth trajectory — a factor that can weigh on the stock until clarity returns.
• Negative Sentiment: Brokerage action and analyst tone are softening: TD Cowen cut its price target slightly to $94 and kept a “hold” rating, limiting upside expectations. TD Cowen adjusts price target on Paychex to $94 from $95; maintains hold rating
• Negative Sentiment: Coverage tone is tilted toward caution — a recent article flagged a consensus analyst stance of “reduce,” and a Seeking Alpha piece cites near‑term growth worries as the reason to remain neutral on Paychex, both of which can prompt selling pressure. Paychex: Staying Neutral Because Of Near-Term Growth Concerns Paychex, Inc. (NASDAQ:PAYX) Given Consensus Rating of “Reduce” by Analysts

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wells Fargo & Company dropped their target price on Paychex from $116.00 to $95.00 and set an “underweight” rating for the company in a research report on Thursday, March 26th. Wolfe Research dropped their target price on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research report on Wednesday, December 10th. Royal Bank Of Canada dropped their target price on Paychex from $125.00 to $102.00 and set a “sector perform” rating for the company in a research report on Thursday, March 19th. Jefferies Financial Group dropped their target price on Paychex from $110.00 to $105.00 and set a “hold” rating for the company in a research report on Thursday, March 26th. Finally, TD Cowen dropped their target price on Paychex from $95.00 to $94.00 and set a “hold” rating for the company in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $108.75.

Paychex Stock Down 2.9%

The company’s 50 day moving average price is $94.24 and its two-hundred day moving average price is $108.50. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.13. The stock has a market cap of $31.27 billion, a P/E ratio of 19.23 and a beta of 0.88.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.04. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. During the same quarter in the previous year, the firm posted $1.49 earnings per share. The company’s revenue was up 19.9% on a year-over-year basis. As a group, research analysts expect that Paychex, Inc. will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were paid a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a dividend yield of 5.0%. The ex-dividend date of this dividend was Wednesday, January 28th. Paychex’s payout ratio is currently 95.15%.

Paychex announced that its board has authorized a stock buyback plan on Friday, January 16th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Paychex

Institutional investors have recently bought and sold shares of the business. Heartwood Wealth Advisors LLC purchased a new position in Paychex during the third quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in Paychex during the third quarter valued at approximately $27,000. Stance Capital LLC purchased a new position in Paychex during the third quarter valued at approximately $31,000. MMA Asset Management LLC purchased a new position in Paychex during the third quarter valued at approximately $32,000. Finally, Westfuller Advisors LLC purchased a new position in Paychex during the third quarter valued at approximately $35,000. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex Company Profile

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.