Wells Fargo & Company Cuts Paychex (NASDAQ:PAYX) Price Target to $95.00

Paychex (NASDAQ:PAYX) had its target price dropped by investment analysts at Wells Fargo & Company from $116.00 to $95.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s price target indicates a potential downside of 0.12% from the stock’s current price.

PAYX has been the topic of a number of other reports. JPMorgan Chase & Co. cut their price target on shares of Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. TD Cowen decreased their price objective on shares of Paychex from $114.00 to $95.00 and set a “hold” rating for the company in a report on Thursday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Stifel Nicolaus dropped their target price on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research note on Wednesday, December 17th. Finally, Citigroup reduced their target price on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a research report on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Paychex has an average rating of “Reduce” and a consensus price target of $117.44.

Paychex Stock Performance

Shares of PAYX traded up $1.75 on Thursday, reaching $95.11. 975,448 shares of the company’s stock traded hands, compared to its average volume of 4,018,328. The stock’s 50 day simple moving average is $97.38 and its two-hundred day simple moving average is $111.39. The stock has a market cap of $34.14 billion, a PE ratio of 21.60 and a beta of 0.91. Paychex has a 52-week low of $86.89 and a 52-week high of $161.24. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.67 by $0.04. The business had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.78 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s revenue was up 19.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.49 earnings per share. On average, analysts forecast that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex announced that its board has initiated a stock repurchase program on Friday, January 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Paychex

Hedge funds have recently made changes to their positions in the stock. ABC Arbitrage SA boosted its holdings in Paychex by 61.4% in the 3rd quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after purchasing an additional 10,726 shares during the period. GSA Capital Partners LLP bought a new position in shares of Paychex in the third quarter worth $1,877,000. Alps Advisors Inc. increased its holdings in shares of Paychex by 20.6% in the third quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock worth $30,494,000 after purchasing an additional 41,114 shares during the period. Summit Global Investments raised its position in shares of Paychex by 1,938.2% in the third quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock worth $6,103,000 after buying an additional 45,781 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its position in shares of Paychex by 38.2% in the third quarter. PNC Financial Services Group Inc. now owns 978,091 shares of the business services provider’s stock worth $123,983,000 after buying an additional 270,327 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

More Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q3 beat and strong revenue growth — Paychex reported adjusted EPS $1.71 (vs. $1.67 est.) and revenue of $1.81B, up ~20% Y/Y; management emphasized AI advisory services and the Paycor acquisition as key growth contributors. PAYX Q1 deep dive: AI initiatives and Paycor integration shape growth outlook
• Positive Sentiment: Market reaction to results — multiple outlets note the quarter’s beat prompted outperformance and a near-term rally as investors reward top-line acceleration and execution on AI services. Paychex Q3 Results: Revenue Soars 20% As Small Businesses Turn To AI
• Neutral Sentiment: Earnings-call/transcript coverage available — full transcripts provide detail for investors evaluating sustainability of revenue mix, PEO trends and cost dynamics. Useful for modeling but not new information. Paychex Q3 2026 Earnings Call Transcript
• Negative Sentiment: Analyst downgrades/price-target cuts — TD Cowen cut its price target to $95 and set a Hold rating, signaling limited near-term upside from current levels. TD Cowen lowers PAYX price target to $95
• Negative Sentiment: Margin and cost-pressure concerns — some coverage flagged rising costs and margin pressure that offset the strong top-line, which earlier prompted a pullback in shares despite revenue strength. Paychex stock slides as cost pressures overshadow Q3
• Negative Sentiment: Mixed analyst stance persists — several firms (William Blair, BMO, Cantor Fitzgerald) remain at Hold/Neutral or Sell, keeping analyst sentiment cautious despite the beat. Cantor Fitzgerald maintains sell on PAYX

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.