Paychex (NASDAQ:PAYX) Price Target Cut to $105.00 by Analysts at TD Cowen

Paychex (NASDAQ:PAYX) had its target price reduced by TD Cowen from $117.00 to $105.00 in a research report released on Friday. TD Cowen currently has a hold rating on the business services provider’s stock.

A number of other brokerages have also weighed in on PAYX. Bank of America lowered their price objective on Paychex from $450.00 to $225.00 in a report on Wednesday, July 15th. Stifel Nicolaus cut their price objective on Paychex from $130.00 to $112.00 and set a “hold” rating for the company in a research report on Thursday. Raymond James Financial raised shares of Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 target price for the company in a research note on Thursday, July 16th. Guggenheim reissued a “neutral” rating on shares of Paychex in a research note on Thursday, September 17th. Finally, Jefferies Financial Group lowered their price target on Paychex from $120.00 to $110.00 and set a “hold” rating for the company in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $129.12.

Paychex Stock Down 0.2%

Shares of Paychex stock opened at $101.37 on Friday. The company has a market cap of $36.06 billion, a P/E ratio of 20.11, a PEG ratio of 2.13 and a beta of 0.82. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.26 and a current ratio of 1.28. Paychex has a one year low of $85.45 and a one year high of $130.32. The firm has a fifty day moving average of $118.52 and a two-hundred day moving average of $104.08.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.02. The business had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The business’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, analysts forecast that Paychex will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

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

Insider Activity at Paychex

In other news, CFO Robert Schrader sold 2,600 shares of the company’s stock in a transaction on 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 directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.60% of the company’s stock.

Institutional Trading of Paychex

A number of hedge funds and other institutional investors have recently modified their holdings of PAYX. Hilton Head Capital Partners LLC purchased a new position in Paychex in the fourth quarter valued at about $31,000. Leonteq Securities AG boosted its stake in shares of Paychex by 2,669.2% during the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock valued at $33,000 after buying an additional 347 shares during the last quarter. Field & Main Bank bought a new stake in shares of Paychex in the second quarter worth $33,000. Castleark Management LLC bought a new position in Paychex during the 2nd quarter valued at $35,000. Finally, Elevation Wealth Partners LLC grew its holdings in Paychex by 45.5% during the 2nd quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider’s stock worth $39,000 after acquiring an additional 125 shares in the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex News Summary

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.