Stephens Has Lowered Expectations for Paychex (NASDAQ:PAYX) Stock Price

Paychex (NASDAQ:PAYX) had its target price cut by research analysts at Stephens from $135.00 to $125.00 in a research report issued on Monday,MarketScreener reports. The brokerage currently has an “equal weight” rating on the business services provider’s stock. Stephens’ price target suggests a potential upside of 9.55% from the company’s current price.

PAYX has been the subject of several other research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Paychex in a research report on Monday, December 15th. Stifel Nicolaus dropped their price objective on Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. BMO Capital Markets cut their target price on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research report on Tuesday, December 9th. Wolfe Research lowered their price target on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a research report on Wednesday, December 10th. Finally, Royal Bank Of Canada cut their price objective on Paychex from $150.00 to $125.00 and set a “sector perform” rating on the stock in a report on Friday, December 5th. Fourteen equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $127.00.

Paychex Stock Performance

NASDAQ PAYX opened at $114.10 on Monday. The business’s 50-day moving average price is $115.54 and its 200 day moving average price is $130.98. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex has a twelve month low of $108.00 and a twelve month high of $161.24. The company has a market capitalization of $41.06 billion, a PE ratio of 25.87 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, research analysts predict that Paychex will post 4.99 earnings per share for the current year.

Institutional Investors Weigh In On Paychex

Several hedge funds have recently modified their holdings of PAYX. Martin Capital Partners LLC boosted its holdings in Paychex by 166.9% during the second quarter. Martin Capital Partners LLC now owns 6,340 shares of the business services provider’s stock worth $922,000 after buying an additional 3,965 shares during the last quarter. Arkadios Wealth Advisors increased its holdings in Paychex by 8.6% during the 2nd quarter. Arkadios Wealth Advisors now owns 53,974 shares of the business services provider’s stock worth $7,851,000 after purchasing an additional 4,254 shares in the last quarter. Invesco Ltd. raised its position in Paychex by 6.0% in the 2nd quarter. Invesco Ltd. now owns 4,384,846 shares of the business services provider’s stock valued at $637,820,000 after buying an additional 249,550 shares during the last quarter. Midwest Trust Co acquired a new stake in shares of Paychex in the second quarter valued at approximately $5,202,000. Finally, Citigroup Inc. lifted its position in Paychex by 31.8% during the 2nd quarter. Citigroup Inc. now owns 846,257 shares of the business services provider’s stock worth $123,097,000 after buying an additional 204,251 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: MarketBeat argues PAYX is “out of favor” but presents a value opportunity — cites 3.8% dividend yield, strong cash flow, share buybacks, AI product rollout and a potential technical floor near $110 that could limit downside and set up a rebound. Paychex Is Out of Favor—And That’s the Opportunity
• Neutral Sentiment: Jim Cramer flagged PAYX as a useful read on employment trends — his coverage brings attention to the company (and notes PAYX “tends to sell off on earnings”), which can amplify short‑term volatility around results. Jim Cramer Notes “Paychex Tends to Sell off on Earnings”
• Neutral Sentiment: Zacks and MarketWatch coverage of the recent Q2 fiscal 2026 results and metrics provide context but are mixed — revenue and EPS commentary keeps attention on growth and margin trends without adding a clear directional push. Paychex (PAYX) Reports Q2 Earnings
• Neutral Sentiment: Citigroup reaffirmed a neutral rating on PAYX, keeping institutional guidance mixed and leaving the stock sensitive to fresh data or guidance changes. Citigroup maintains Paychex (PAYX) neutral recommendation
• Negative Sentiment: Multiple firms trimmed price targets and ratings this week (JPMorgan, Morgan Stanley, Stephens), reducing near‑term upside expectations and pressuring the stock. Stephens adjusts price target on Paychex to $125
• Negative Sentiment: Benzinga and others report analysts slashed forecasts after Q2 results, signaling worries about near‑term growth and prompting some to cut earnings estimates — a direct negative for valuation and momentum. Paychex Analysts Slash Their Forecasts Following Q2 Earnings
• Negative Sentiment: MarketWatch notes PAYX underperformed peers recently despite some daily gains, underscoring sector rotation and the impact of downgrades on relative performance. Paychex Inc. stock underperforms

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.