Stifel Nicolaus Cuts Paychex (NASDAQ:PAYX) Price Target to $112.00

Paychex (NASDAQ:PAYX) had its target price lowered by Stifel Nicolaus from $130.00 to $112.00 in a research report report published on Thursday, MarketBeat reports. The firm currently has a hold rating on the business services provider’s stock.

A number of other brokerages have also commented on PAYX. Raymond James Financial raised shares of Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 price objective for the company in a research report on Thursday, July 16th. Cantor Fitzgerald reissued an “underweight” rating and set a $107.00 target price on shares of Paychex in a research report on Monday, July 20th. Citigroup boosted their price target on Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Wolfe Research raised Paychex from an “underperform” rating to a “peer perform” rating in a report on Wednesday, September 16th. Finally, Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 20th. 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 assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $129.12.

Paychex Stock Performance

PAYX opened at $101.37 on Thursday. The company has a quick ratio of 1.26, a current ratio of 1.28 and a debt-to-equity ratio of 1.23. The stock’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 capitalization of $36.06 billion, a P/E ratio of 20.11, a price-to-earnings-growth ratio of 2.13 and a beta of 0.82. 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 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.02. Paychex had a return on equity of 52.78% and a net margin of 27.35%.The company had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same period in the previous year, the company earned $1.22 earnings per share. The company’s quarterly 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, equities analysts forecast that Paychex will post 5.96 earnings per share for the current year.

Paychex Announces Dividend

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

Insider Buying and Selling 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 shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares of the company’s stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Paychex

A number of institutional investors have recently added to or reduced their stakes in the stock. EFG International AG bought a new position in shares of Paychex during the 2nd quarter worth approximately $1,494,000. Western Wealth Management LLC bought a new stake in Paychex in the first quarter valued at $1,174,000. Oppenheimer Asset Management Inc. bought a new stake in Paychex in the second quarter valued at $7,296,000. Callan Family Office LLC acquired a new position in Paychex during the second quarter worth $2,928,000. Finally, BlackRock Inc. acquired a new position in Paychex during the second quarter worth $2,728,970,000. 83.47% of the stock is owned by institutional investors and hedge funds.

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.