Paychex (NASDAQ:PAYX – Get Free Report)‘s stock had its “sector perform” rating restated by analysts at Royal Bank Of Canada in a research note issued to investors on Thursday, Benzinga reports. They presently have a $130.00 price objective on the business services provider’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 26.61% from the stock’s current price.
Other research analysts have also issued reports about the company. Weiss Ratings raised Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. Stifel Nicolaus dropped their target price on shares of Paychex from $130.00 to $112.00 and set a “hold” rating on the stock in a report on Thursday. JPMorgan Chase & Co. upgraded shares of Paychex from an “underweight” rating to a “neutral” rating and raised their target price for the stock from $105.00 to $115.00 in a report on Thursday. Cantor Fitzgerald reiterated an “underweight” rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. Finally, Stephens cut their target price on Paychex from $132.00 to $113.00 and set an “equal weight” rating on the stock in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $129.82.
Get Our Latest Stock Report on PAYX
Paychex Stock Performance
Paychex (NASDAQ:PAYX – Get Free Report) last released its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, beating 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 net margin of 27.03% and a return on equity of 50.90%. Paychex’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter last year, the company earned $1.22 EPS. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, research analysts expect that Paychex will post 5.96 EPS for the current fiscal year.
Insider Buying and Selling at Paychex
In other news, Director Joseph Tucci sold 3,907 shares of the business’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Robert Schrader sold 2,600 shares of Paychex stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer directly owned 18,547 shares in the company, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.60% of the company’s stock.
Institutional Investors Weigh In On Paychex
Institutional investors and hedge funds have recently bought and sold shares of the business. Capital International Investors raised its position in Paychex by 59.1% in the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. BlackRock Inc. bought a new position in shares of Paychex during the 2nd quarter worth approximately $2,728,970,000. State Street Corp grew its position in Paychex by 2.6% in the second 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 period. XXEC Inc. acquired a new position in Paychex during the second quarter worth $1,123,016,000. Finally, Geode Capital Management LLC lifted its holdings in shares of Paychex by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider’s stock valued at $1,093,958,000 after acquiring an additional 78,760 shares during the period. Institutional investors own 83.47% of the company’s stock.
Key Headlines Impacting Paychex
Here are the key news stories impacting Paychex this week:
- Positive Sentiment: Paychex reported fiscal first-quarter revenue of $1.63 billion, up 5.9% year over year, while adjusted EPS of $1.34 exceeded estimates near $1.32. Operating margin expanded to 38% from 35.2%, and adjusted earnings increased at a double-digit rate. Paychex fiscal 2027 first-quarter results
- Positive Sentiment: PEO and Insurance Solutions revenue rose 12% to $367.6 million, prompting Paychex to raise that segment’s fiscal 2027 growth outlook to 7%-8% from 6%-7%. Management also highlighted increased AI adoption and launched WISE Hire, an agentic recruiting solution available independently and through its HCM platforms. Paychex WISE Hire announcement
- Neutral Sentiment: Paychex maintained fiscal 2027 guidance for total revenue growth of 5%-6% and adjusted EPS growth of 7%-9%, with revenue expected at $6.8 billion-$6.9 billion. Second-quarter revenue guidance was broadly in line with consensus, offering limited evidence of near-term acceleration. Paychex updated guidance
- Neutral Sentiment: Analyst sentiment was mixed. JPMorgan upgraded Paychex to neutral and raised its target to $115, while RBC maintained a sector-perform rating with a $130 target. However, Stephens, Stifel, Jefferies and UBS lowered their targets to $110-$115, reflecting more cautious growth expectations.
- Negative Sentiment: Management Solutions, Paychex’s largest segment, grew only 4% to roughly $1.2 billion—below investor expectations and below the segment’s full-year target of 5%-6%. The shortfall overshadowed the headline earnings beat and raised questions about the pace of cross-selling and integration benefits. Paychex key segment results
- Negative Sentiment: Investors also questioned earnings quality: reported operating cash flow of $413.5 million was below the $424.1 million paid in dividends, while commentary pointed to weaker free cash flow and a less favorable gap between GAAP and adjusted profits. This has increased scrutiny of dividend coverage after the stock’s recent decline. Paychex dividend coverage analysis
Paychex Company Profile
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.
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