Paychex (NASDAQ:PAYX) Given New $95.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo cut its price target on Paychex to $95.00 and placed the stock at an "underweight" rating, joining several firms that have reduced targets recently.
• Paychex beat Q3 expectations, reporting $1.71 EPS (vs. $1.67 est.) and revenue of $1.81 billion, up about 20% year-over-year.
• Despite the beat, analysts remain cautious—MarketBeat shows an average rating of "Reduce" with multiple downgrades and price-target cuts, while the company authorized a $1 billion share buyback (~2.5% of shares).

Paychex (NASDAQ:PAYX - Get Free Report) had its price target decreased by analysts at Wells Fargo & Company from $116.00 to $95.00 in a report released on Thursday,Benzinga reports. The firm currently has an "underweight" rating on the business services provider's stock. Wells Fargo & Company's price target would indicate a potential downside of 0.12% from the company's current price.

A number of other research firms have also recently issued reports on PAYX. Citigroup cut their price target on Paychex from $139.00 to $120.00 and set a "neutral" rating on the stock in a report on Monday, December 22nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Paychex in a research note on Monday, December 29th. Royal Bank Of Canada dropped their target price on shares of Paychex from $125.00 to $102.00 and set a "sector perform" rating on the stock in a research report on Thursday, March 19th. Cantor Fitzgerald raised shares of Paychex to a "strong sell" rating in a research note on Tuesday, January 27th. Finally, Wolfe Research reduced their price target on shares of Paychex from $130.00 to $115.00 and set an "underperform" rating for the company in a report on Wednesday, December 10th. One analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, Paychex currently has an average rating of "Reduce" and an average price target of $117.44.

Paychex Trading Up 1.9%

Shares of PAYX stock traded up $1.75 during mid-day trading on Thursday, hitting $95.11. The company's stock had a trading volume of 975,448 shares, compared to its average volume of 4,018,328. The company has a market cap of $34.14 billion, a PE ratio of 21.60 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27. The company's fifty day simple moving average is $97.38 and its 200-day simple moving average is $111.39. Paychex has a 52 week low of $86.89 and a 52 week high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its earnings results on Wednesday, March 25th. The business services provider reported $1.71 EPS for the quarter, beating the consensus estimate of $1.67 by $0.04. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The company had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the prior year, the company earned $1.49 EPS. The firm's revenue for the quarter was up 19.9% compared to the same quarter last year. As a group, equities research analysts expect that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex declared that its Board of Directors has initiated a share repurchase plan on Friday, January 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 2.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Paychex

Large investors have recently added to or reduced their stakes in the business. Heartwood Wealth Advisors LLC bought a new stake in Paychex during the third quarter worth $25,000. Vermillion & White Wealth Management Group LLC purchased a new stake in shares of Paychex in the third quarter valued at about $27,000. Cornerstone Planning Group LLC lifted its position in shares of Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider's stock valued at $30,000 after purchasing an additional 268 shares in the last quarter. Stance Capital LLC purchased a new position in Paychex during the third quarter worth about $31,000. Finally, Hilton Head Capital Partners LLC purchased a new position in Paychex during the fourth quarter worth about $31,000. Institutional investors own 83.47% of the company's stock.

Paychex News Summary

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q3 beat and strong revenue growth — Paychex reported adjusted EPS $1.71 (vs. $1.67 est.) and revenue of $1.81B, up ~20% Y/Y; management emphasized AI advisory services and the Paycor acquisition as key growth contributors. PAYX Q1 deep dive: AI initiatives and Paycor integration shape growth outlook
• Positive Sentiment: Market reaction to results — multiple outlets note the quarter’s beat prompted outperformance and a near-term rally as investors reward top-line acceleration and execution on AI services. Paychex Q3 Results: Revenue Soars 20% As Small Businesses Turn To AI
• Neutral Sentiment: Earnings-call/transcript coverage available — full transcripts provide detail for investors evaluating sustainability of revenue mix, PEO trends and cost dynamics. Useful for modeling but not new information. Paychex Q3 2026 Earnings Call Transcript
• Negative Sentiment: Analyst downgrades/price-target cuts — TD Cowen cut its price target to $95 and set a Hold rating, signaling limited near-term upside from current levels. TD Cowen lowers PAYX price target to $95
• Negative Sentiment: Margin and cost-pressure concerns — some coverage flagged rising costs and margin pressure that offset the strong top-line, which earlier prompted a pullback in shares despite revenue strength. Paychex stock slides as cost pressures overshadow Q3
• Negative Sentiment: Mixed analyst stance persists — several firms (William Blair, BMO, Cantor Fitzgerald) remain at Hold/Neutral or Sell, keeping analyst sentiment cautious despite the beat. Cantor Fitzgerald maintains sell on PAYX

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

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