TD Cowen Lowers Paychex (NASDAQ:PAYX) Price Target to $95.00

Paychex (NASDAQ:PAYX) had its price target cut by equities researchers at TD Cowen from $114.00 to $95.00 in a report issued on Thursday,Benzinga reports. The firm presently has a “hold” rating on the business services provider’s stock. TD Cowen’s target price suggests a potential upside of 3.62% from the company’s previous close.

Other equities research analysts also recently issued reports about the company. Stephens decreased their target price on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a research report on Monday, December 22nd. Cantor Fitzgerald upgraded Paychex to a “strong sell” rating in a report on Tuesday, January 27th. Wells Fargo & Company reduced their price objective on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a research note on Tuesday, December 9th. JPMorgan Chase & Co. decreased their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating on the stock in a report on Monday, December 22nd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $114.56.

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $91.68 on Thursday. The company has a market cap of $32.91 billion, a P/E ratio of 20.19 and a beta of 0.91. Paychex has a 52-week low of $86.89 and a 52-week high of $161.24. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.27 and a current ratio of 1.26. The firm’s fifty day moving average is $96.65 and its two-hundred day moving average is $110.96.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data 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. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The business’s revenue was up 19.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.49 EPS. As a group, analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Paychex declared that its Board of Directors has approved a share buyback plan on Friday, January 16th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Paychex

Large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its position in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after buying an additional 1,190 shares during the last quarter. Bison Wealth LLC increased its position in Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after acquiring an additional 117 shares during the last quarter. Woodline Partners LP bought a new position in Paychex during the 1st quarter valued at about $3,333,000. Summit Global Investments purchased a new stake in Paychex in the 2nd quarter worth about $344,000. Finally, Steward Partners Investment Advisory LLC raised its position in Paychex by 7.6% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 44,217 shares of the business services provider’s stock worth $6,432,000 after purchasing an additional 3,138 shares during the period. 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: Q3 beat and upbeat management commentary — Paychex reported stronger‑than‑expected Q3 results (EPS and revenue beat) and management emphasized AI initiatives and the Paycor integration as growth drivers. That underpins the company’s SaaS transition and recurring revenue trajectory. Paychex Q3 2026 Earnings Call Transcript Paychex Q3 Earnings Call Highlights
• Positive Sentiment: High‑profile bullish take — Jim Cramer argued AI disruption fears are overblown and highlighted the strong quarter, which can support investor confidence if sentiment shifts back to fundamentals. Jim Cramer on Paychex
• Positive Sentiment: Analyst/market notes urging retention — Research pieces (Zacks, Motley Fool) cite SaaS demand, AI productization and dividend yield as reasons to hold or accumulate through near‑term volatility. Reasons Why You Should Retain Paychex Stock Should You Buy the 3 Highest-Yielding Dividend Stocks
• Neutral Sentiment: Analysts maintain holds citing balanced risk/reward — Several firms (William Blair, BMO, Argus) kept neutral/hold stances, noting solid fundamentals but caution on macro and AI headwinds. These maintain market ambiguity. Solid Fundamentals but Macro and AI Headwinds Analysts’ Opinions Are Mixed
• Negative Sentiment: Multiple price‑target cuts and downgrades — Big banks (JPMorgan, Citigroup, Wells Fargo, TD Cowen) trimmed targets and some moved to underweight/hold after the quarter, which pressured sentiment and likely drove the intraday decline. Analysts also pared forecasts in aggregate. Paychex Analysts Cut Their Forecasts After Q3 Results

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.