Paychex (NASDAQ:PAYX – Free Report) had its target price decreased by Jefferies Financial Group from $120.00 to $110.00 in a research report report published on Thursday morning. Jefferies Financial Group currently has a hold rating on the business services provider’s stock.
A number of other equities analysts have also recently issued reports on the company. Morgan Stanley increased their target price on Paychex from $107.00 to $109.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Guggenheim reaffirmed a “neutral” rating on shares of Paychex in a research report on Thursday, September 17th. Wolfe Research upgraded Paychex from an “underperform” rating to a “peer perform” rating in a report on Wednesday, September 16th. Stifel Nicolaus cut their target price on Paychex from $130.00 to $112.00 and set a “hold” rating on the stock in a research note on Thursday. Finally, JPMorgan Chase & Co. raised Paychex from an “underweight” rating to a “neutral” rating and upped their price target for the stock from $105.00 to $115.00 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 issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $129.12.
Check Out Our Latest Analysis on PAYX
Paychex Stock Performance
Paychex (NASDAQ:PAYX – Get Free Report) last issued 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. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the firm earned $1.22 earnings per share. The firm’s revenue was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, analysts forecast that Paychex will post 5.96 EPS for the current fiscal year.
Paychex Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were given a $1.19 dividend. The ex-dividend date of this dividend was Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.7%. Paychex’s payout ratio is currently 97.34%.
Insider Transactions at Paychex
In related news, CFO Robert Schrader sold 2,600 shares of the company’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.60% of the company’s stock.
Institutional Investors Weigh In On Paychex
Institutional investors and hedge funds have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new stake in shares of Paychex in the 4th quarter valued at approximately $31,000. Leonteq Securities AG increased its holdings in Paychex by 2,669.2% during the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock worth $33,000 after buying an additional 347 shares during the last quarter. Field & Main Bank bought a new stake in Paychex during the second quarter worth $33,000. Castleark Management LLC acquired a new stake in Paychex in the second quarter valued at $35,000. Finally, Elevation Wealth Partners LLC lifted its stake in Paychex by 45.5% in the second quarter. Elevation Wealth Partners LLC now owns 400 shares of the business services provider’s stock valued at $39,000 after acquiring an additional 125 shares during the last quarter. Institutional investors own 83.47% of the company’s stock.
More Paychex News
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.
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