Paychex (NASDAQ:PAYX) Given New $105.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered Paychex’s price target to $105 from $117 and maintained a “hold” rating, implying only 3.58% upside from the stock’s $101.37 price. The broader analyst consensus also remains “Hold,” with a $129.12 target.
• Paychex reported quarterly earnings of $1.34 per share, topping estimates by $0.02, while revenue rose 5.9% year over year to $1.63 billion. The company reaffirmed its fiscal 2027 outlook, but analysts remain concerned about slowing growth and sales momentum.
• Institutional investors own 83.47% of Paychex, while insider ownership is 0.60%; CFO Robert Schrader recently sold 2,600 shares at an average price of $115.09.

Paychex (NASDAQ:PAYX - Get Free Report) had its target price decreased by equities researchers at TD Cowen from $117.00 to $105.00 in a research note issued on Friday. The firm presently has a "hold" rating on the business services provider's stock. TD Cowen's target price would indicate a potential upside of 3.58% from the stock's current price.

Other equities research analysts have also issued reports about the stock. BMO Capital Markets decreased their target price 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. Cantor Fitzgerald restated an "underweight" rating and set a $107.00 target price on shares of Paychex in a research report on Monday, July 20th. Jefferies Financial Group decreased their price target on shares of Paychex from $120.00 to $110.00 and set a "hold" rating on the stock in a research report on Thursday. Morgan Stanley boosted their price objective on shares of Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. Finally, Wells Fargo & Company raised their target price on Paychex from $95.00 to $111.00 and gave the stock an "underweight" rating in a report on Wednesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Paychex currently has a consensus rating of "Hold" and a consensus target price of $129.12.

Paychex Stock Down 0.2%

NASDAQ PAYX opened at $101.37 on Friday. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.28 and a quick ratio of 1.26. Paychex has a 1 year low of $85.45 and a 1 year high of $130.32. The stock has a market capitalization of $36.06 billion, a PE ratio of 20.11, a PEG ratio of 2.13 and a beta of 0.82. The business's 50-day moving average is $118.52 and its 200 day moving average is $104.08.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $1.63 billion. During the same period in the previous year, the company posted $1.22 earnings per share. The firm's revenue was up 5.9% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Sell-side analysts forecast that Paychex will post 5.96 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Robert Schrader sold 2,600 shares of Paychex 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 sale, the chief financial officer owned 18,547 shares of the company's stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Paychex

A number of hedge funds have recently bought and sold shares of PAYX. Capital International Investors boosted its holdings in Paychex by 59.1% in the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider's stock valued at $3,395,583,000 after purchasing an additional 11,243,295 shares during the period. BlackRock Inc. bought a new position in shares of Paychex during the second quarter worth approximately $2,728,970,000. State Street Corp boosted its stake in shares of 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 buying an additional 361,713 shares during the period. XXEC Inc. bought a new stake in shares of Paychex in the second quarter valued at approximately $1,123,016,000. Finally, Geode Capital Management LLC grew its position in 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 worth $1,093,958,000 after buying an additional 78,760 shares in the last quarter. 83.47% of the stock is owned by institutional investors.

Trending Headlines about 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.

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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