Paychex (NASDAQ:PAYX) Stock Price Target Lowered at TD Cowen

Paychex (NASDAQ:PAYX) had its price objective dropped by equities researchers at TD Cowen from $117.00 to $105.00 in a report issued on Friday. The brokerage currently has a “hold” rating on the business services provider’s stock. TD Cowen’s price target suggests a potential upside of 3.58% from the company’s previous close.

Several other research analysts also recently commented on the stock. Royal Bank Of Canada restated a “sector perform” rating and set a $130.00 price objective on shares of Paychex in a research report on Thursday. Citigroup boosted their price target on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. UBS Group cut their price objective on Paychex from $125.00 to $115.00 and set a “neutral” rating on the stock in a research note on Thursday. Wells Fargo & Company boosted their price objective on Paychex from $95.00 to $111.00 and gave the company an “underweight” rating in a research note on Wednesday, September 9th. Finally, Raymond James Financial raised shares of Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 target price on the stock in a research note on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $129.12.

Paychex Price Performance

PAYX stock opened at $101.37 on Friday. The company’s 50-day moving average price is $118.52 and its two-hundred day moving average price is $104.08. The firm has a market cap of $36.06 billion, a P/E ratio of 20.11, a P/E/G ratio of 2.13 and a beta of 0.82. The company has a quick ratio of 1.26, a current ratio of 1.28 and a debt-to-equity ratio of 1.23. Paychex has a 12 month low of $85.45 and a 12 month high of $130.32.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion during 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 firm’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.22 EPS. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, analysts anticipate that Paychex will post 5.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Paychex

In other news, CFO Robert Schrader sold 2,600 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.60% of the stock is owned by insiders.

Institutional Trading of Paychex

A number of hedge funds have recently bought and sold shares of PAYX. Hilton Head Capital Partners LLC purchased a new position in shares of Paychex in the 4th quarter worth about $31,000. Leonteq Securities AG lifted its position in shares of 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 acquiring an additional 347 shares in the last quarter. Field & Main Bank purchased a new stake in shares of Paychex during the second quarter worth $33,000. Castleark Management LLC bought a new position in shares of Paychex in the second quarter worth $35,000. Finally, Elevation Wealth Partners LLC boosted its holdings in shares of Paychex by 45.5% in the second 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 during the period. 83.47% of the stock is currently owned by institutional investors.

Key Stories Impacting Paychex

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.