Robert W. Baird Has Lowered Expectations for Paychex (NASDAQ:PAYX) Stock Price

Paychex (NASDAQ:PAYX) had its price objective dropped by analysts at Robert W. Baird from $125.00 to $110.00 in a report issued on Monday, Marketbeat reports. The brokerage presently has a “neutral” rating on the business services provider’s stock. Robert W. Baird’s price objective would suggest a potential upside of 10.76% from the company’s current price.

PAYX has been the subject of a number of other reports. BMO Capital Markets decreased their price target on shares of Paychex from $118.00 to $113.00 and set a “market perform” rating for the company in a research note on Thursday, September 24th. Raymond James Financial raised Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 price objective on the stock in a research report on Thursday, July 16th. Citigroup increased their target price on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Stephens dropped their price target on Paychex from $132.00 to $113.00 and set an “equal weight” rating on the stock in a research report on Thursday, September 24th. Finally, Jefferies Financial Group reduced their price target on Paychex from $120.00 to $110.00 and set a “hold” rating on the stock in a research note on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $127.59.

Paychex Stock Performance

Shares of PAYX stock opened at $99.31 on Monday. The firm has a market capitalization of $35.35 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 2.08 and a beta of 0.82. The stock has a fifty day moving average of $117.95 and a 200 day moving average of $104.18. Paychex has a 52 week low of $85.45 and a 52 week high of $129.24. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.23.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.22 EPS. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, research analysts expect that Paychex will post 5.96 earnings per share for the current year.

Insider Buying and Selling at Paychex

In other news, CFO Robert Schrader sold 2,600 shares of the firm’s stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.60% of the stock is owned by insiders.

Institutional Trading of Paychex

Institutional investors have recently bought and sold shares of the company. Hilton Head Capital Partners LLC bought a new position in shares of Paychex in the fourth quarter worth approximately $31,000. Leonteq Securities AG increased 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 valued at $33,000 after acquiring an additional 347 shares in the last quarter. Field & Main Bank bought a new stake in shares of Paychex during the second quarter valued at approximately $33,000. Castleark Management LLC purchased a new position in Paychex in the 2nd quarter worth approximately $35,000. Finally, Elevation Wealth Partners LLC raised its holdings in Paychex by 45.5% in 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 during the last quarter. 83.47% of the stock is owned by hedge funds and other institutional investors.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal 2027 first-quarter revenue increased approximately 6% to $1.63 billion, while adjusted earnings per share rose 10% to $1.34, topping the $1.32 consensus estimate. Paychex maintained its fiscal 2027 EPS outlook of approximately $5.90 to $6.01. Paychex segment mix and guidance article
• Positive Sentiment: PEO and artificial-intelligence initiatives are gaining attention. Management highlighted strength in its professional employer organization business and continued investment in AI, which could support longer-term productivity and growth. Paychex earnings call highlights
• Neutral Sentiment: Small-business employment remained stable. The Paychex Small Business Employment Watch showed a modest 0.02-point increase in September to 99.15, suggesting a broadly steady employment backdrop for Paychex’s core customer base. Paychex Small Business Employment Watch
• Negative Sentiment: Investors reacted negatively to a shift in segment mix. Although results beat estimates, the composition of growth apparently raised concerns about the durability and quality of earnings, contributing to the sharp recent decline in PAYX shares.
• Negative Sentiment: Analysts have reduced valuation targets. Cantor Fitzgerald cut its target to $96 and retained an underweight rating, while Robert W. Baird lowered its target to $110 with a neutral rating; TD Cowen also reduced its target to $105. These actions reinforce near-term uncertainty. TD Cowen price target article
• Negative Sentiment: The dividend’s appeal is offset by balance-sheet risk. Paychex offers a yield nearly twice that of ADP, but billions of dollars in acquisition-related debt raise questions about the sustainability and attractiveness of the payout.

About Paychex

Paychex, Inc (NASDAQ: PAYX) provides payroll, human resources and employee benefits solutions for businesses of varying sizes. Its services are designed to help employers manage workforce administration, compliance and employee-related processes through integrated software and professional support.

The company’s offerings include payroll processing, time and attendance tracking, human resources administration, recruiting and onboarding tools, benefits administration, retirement services, workers’ compensation and business insurance solutions.