Robert W. Baird Cuts Paychex (NASDAQ:PAYX) Price Target to $125.00

Paychex (NASDAQ:PAYX) had its target price cut by Robert W. Baird from $148.00 to $125.00 in a research report report published on Thursday morning,Benzinga reports. They currently have a neutral rating on the business services provider’s stock.

Several other brokerages have also recently issued reports on PAYX. Stifel Nicolaus reduced their price target on shares of Paychex from $137.00 to $126.00 and set a “hold” rating on the stock in a research report on Wednesday, December 17th. Wells Fargo & Company cut their price objective on Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a research report on Tuesday, December 9th. Guggenheim started coverage on Paychex in a report on Thursday, March 19th. They set a “neutral” rating on the stock. BMO Capital Markets decreased their target price on Paychex from $121.00 to $103.00 and set a “market perform” rating for the company in a research report on Friday, March 13th. Finally, Argus lowered their target price on Paychex from $150.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, January 2nd. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, Paychex presently has an average rating of “Reduce” and a consensus price target of $114.56.

Paychex Stock Performance

Shares of PAYX stock opened at $91.68 on Thursday. The firm has a market capitalization of $32.91 billion, a price-to-earnings ratio of 20.19 and a beta of 0.91. The stock has a fifty day moving average of $96.65 and a 200 day moving average of $110.80. Paychex has a 52 week low of $86.89 and a 52 week high of $161.24. The company has a quick ratio of 1.27, a current ratio of 1.26 and a debt-to-equity ratio of 1.13.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.67 by $0.04. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.78 billion. During the same period in the previous year, the firm earned $1.49 EPS. The company’s quarterly revenue was up 19.9% compared to the same quarter last year. As a group, research analysts expect that Paychex will post 4.99 earnings per share for the current year.

Paychex declared that its Board of Directors has authorized a share buyback 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 buy up to 2.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were issued a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio is 95.15%.

Institutional Trading of Paychex

A number of hedge funds have recently made changes to their positions in the stock. ABC Arbitrage SA increased its position in shares of Paychex by 61.4% during the third quarter. ABC Arbitrage SA now owns 28,208 shares of the business services provider’s stock valued at $3,576,000 after acquiring an additional 10,726 shares in the last quarter. GSA Capital Partners LLP bought a new position in Paychex in the 3rd quarter valued at approximately $1,877,000. Alps Advisors Inc. boosted its stake in Paychex by 20.6% during the 3rd quarter. Alps Advisors Inc. now owns 240,564 shares of the business services provider’s stock valued at $30,494,000 after purchasing an additional 41,114 shares during the last quarter. Summit Global Investments boosted its stake in Paychex by 1,938.2% during the 3rd quarter. Summit Global Investments now owns 48,143 shares of the business services provider’s stock valued at $6,103,000 after purchasing an additional 45,781 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Paychex by 38.2% in the 3rd quarter. PNC Financial Services Group Inc. now owns 978,091 shares of the business services provider’s stock worth $123,983,000 after purchasing an additional 270,327 shares in the last quarter. 83.47% of the stock is owned by institutional investors.

Paychex News Roundup

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.