Paychex (NASDAQ:PAYX) Price Target Lowered to $110.00 at Jefferies Financial Group

Key Points

• Jefferies lowered Paychex’s price target to $110 from $120 while maintaining a “hold” rating, implying roughly 5.1% upside from the prior close. The broader analyst consensus remains “hold,” with an average target of $128.18.
• Paychex exceeded quarterly earnings expectations, reporting $1.34 EPS versus the $1.32 consensus, while revenue rose 5.9% year over year to $1.63 billion. PEO and Insurance Solutions revenue increased 12%, leading the company to raise its full-year growth outlook for that segment.
• Shares opened at $104.66, well below the 52-week high of $130.32. Recent insider transactions involved stock sales, while institutional investors and hedge funds own a substantial 83.47% of the company.

Paychex (NASDAQ:PAYX - Get Free Report) had its price target decreased by equities researchers at Jefferies Financial Group from $120.00 to $110.00 in a note issued to investors on Thursday. The firm presently has a "hold" rating on the business services provider's stock. Jefferies Financial Group's price target points to a potential upside of 5.11% from the stock's previous close.

Other analysts have also issued reports about the company. Guggenheim reaffirmed a "neutral" rating on shares of Paychex in a report on Thursday, September 17th. BMO Capital Markets reaffirmed a "market perform" rating and set a $113.00 target price (down from $118.00) on shares of Paychex in a report on Thursday. Bank of America dropped their price target on shares of Paychex from $450.00 to $225.00 in a research report on Wednesday, July 15th. TD Cowen upped their price objective on shares of Paychex from $98.00 to $117.00 and gave the stock a "hold" rating in a research report on Friday, September 11th. Finally, Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $128.18.

Paychex Stock Performance

Shares of Paychex stock opened at $104.66 on Thursday. The firm has a market capitalization of $37.22 billion, a P/E ratio of 21.62, a PEG ratio of 2.40 and a beta of 0.82. Paychex has a 52 week low of $85.45 and a 52 week high of $130.32. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The company has a 50 day moving average price of $119.04 and a 200 day moving average price of $104.09.

Paychex (NASDAQ:PAYX - Get Free Report) last announced 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. The firm had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.63 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The company's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period last year, the business posted $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. Sell-side analysts expect that Paychex will post 5.96 EPS for the current year.

Insider Buying and Selling at Paychex

In related news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph M. Tucci sold 3,907 shares of the firm's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the sale, the director owned 67,364 shares in the company, valued at approximately $6,618,513. This represents a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Paychex

Hedge funds and other institutional investors have recently bought and sold shares of the stock. XXEC Inc. acquired a new position in Paychex during the second quarter worth approximately $1,123,016,000. BlackRock Inc. purchased a new position in shares of Paychex during the second quarter worth approximately $2,728,970,000. Capital International Investors increased its holdings in shares of 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 acquiring an additional 11,243,295 shares during the period. Bank of America Corp DE purchased a new stake in Paychex in the 2nd quarter valued at $434,061,000. Finally, Norges Bank acquired a new stake in Paychex during the 4th quarter worth $257,699,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Key Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex reported fiscal Q1 adjusted earnings of $1.34 per share, above the $1.32–$1.33 analyst consensus, while revenue increased 5.9% year over year to $1.63 billion, in line with expectations. Operating margin expanded to 38.0% from 35.2%. Paychex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: PEO and Insurance Solutions revenue rose 12% to $367.6 million, prompting Paychex to raise its full-year growth outlook for that segment to 7%–8%, from 6%–7%.
• Positive Sentiment: JPMorgan upgraded PAYX from “underweight” to “neutral” and assigned a $115 price target, suggesting potential upside from the stock’s recent level. JPMorgan upgrades Paychex
• Positive Sentiment: The company introduced WISE Hire, an agentic AI recruiting product designed to automate candidate sourcing, matching and workflow management. The offering could support longer-term cross-selling and platform expansion. Paychex Introduces WISE Hire

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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