Stephens Cuts Paychex (NASDAQ:PAYX) Price Target to $125.00

Paychex (NASDAQ:PAYX) had its price target cut by Stephens from $135.00 to $125.00 in a report released on Monday,MarketScreener reports. They currently have an equal weight rating on the business services provider’s stock.

Several other research firms also recently weighed in on PAYX. BMO Capital Markets decreased their price target on shares of Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Citigroup cut their price objective on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research note on Monday, December 15th. Royal Bank Of Canada dropped their price target on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research report on Friday, December 5th. Finally, Robert W. Baird reduced their price objective on Paychex from $153.00 to $148.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 1st. Fourteen equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $127.00.

Paychex Stock Performance

NASDAQ PAYX opened at $114.66 on Monday. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. The stock’s 50 day simple moving average is $115.28 and its 200-day simple moving average is $130.87. The company has a market cap of $41.16 billion, a PE ratio of 26.00 and a beta of 0.91. Paychex has a 1-year low of $108.00 and a 1-year high of $161.24.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The firm had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.55 billion. During the same period in the previous year, the business earned $1.14 earnings per share. The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th were paid a $1.08 dividend. The ex-dividend date of this dividend was Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 3.8%. Paychex’s dividend payout ratio is 97.96%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Paychex by 17.2% during the third quarter. Vanguard Group Inc. now owns 37,765,468 shares of the business services provider’s stock worth $4,787,151,000 after acquiring an additional 5,549,511 shares during the last quarter. Norges Bank acquired a new position in shares of Paychex in the 2nd quarter valued at $302,244,000. Select Equity Group L.P. grew its holdings in shares of Paychex by 99.0% during the 1st quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider’s stock worth $539,102,000 after purchasing an additional 1,738,372 shares during the period. Voloridge Investment Management LLC acquired a new stake in shares of Paychex during the 3rd quarter worth about $117,809,000. Finally, Marshall Wace LLP raised its holdings in Paychex by 179.5% in the 2nd quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock valued at $156,854,000 after buying an additional 692,533 shares during the period. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: MarketBeat argues Paychex is “out of favor” and presents a value opportunity: support near ~$110, a 3.8% dividend yield, 17% quarterly revenue growth noted in recent results, AI product rollouts as a medium-term growth catalyst, and potential upside if sentiment stabilizes. Paychex Is Out of Favor—And That’s the Opportunity
• Neutral Sentiment: Morgan Stanley reaffirmed its Hold on PAYX, signaling no near-term upgrade from a major broker. Morgan Stanley Reaffirms Their Hold Rating on Paychex (PAYX)
• Neutral Sentiment: Stifel Nicolaus also maintained a Hold on the stock, adding to the chorus of neutral analyst stances that limit upward catalyst from the sell-side. Stifel Nicolaus Sticks to Their Hold Rating for Paychex (PAYX)
• Neutral Sentiment: Citigroup and other coverage pieces classify PAYX as neutral/conflicted among analysts — reinforcing that consensus sentiment is cautious rather than bullish. Citigroup maintains Paychex (PAYX) neutral recommendation
• Neutral Sentiment: Short-interest data posted for December appears to show zero reported short interest (with a NaN increase), which reads as a data anomaly rather than a credible signal — monitor updated filings for a real read on short demand.
• Negative Sentiment: Media attention from Jim Cramer highlighted that “Paychex tends to sell off on earnings,” a narrative that can amplify volatility around quarterly reports and weigh on investor sentiment. Jim Cramer Notes “Paychex Tends to Sell off on Earnings”
• Negative Sentiment: MarketWatch flagged PAYX underperforming peers on a recent session despite daily gains, underscoring that relative-performance pressure and analyst downgrades have been a drag this quarter. Paychex Inc. stock underperforms Monday when compared to competitors despite daily gains

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.