Paychex (NASDAQ:PAYX) Given New $125.00 Price Target at Stephens

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

PAYX has been the topic of several other research reports. Wells Fargo & Company dropped their target price on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Citigroup dropped their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday. JPMorgan Chase & Co. cut their price objective on Paychex from $140.00 to $125.00 and set an “underweight” rating for the company in a research report on Monday. TD Cowen lowered their target price on Paychex from $126.00 to $114.00 and set a “hold” rating on the stock in a report on Monday, December 1st. Finally, Jefferies Financial Group set a $110.00 price target on Paychex in a research report on Friday. Fourteen research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $127.00.

Paychex Stock Performance

PAYX opened at $114.88 on Monday. The stock has a 50-day moving average of $115.83 and a 200-day moving average of $131.30. Paychex has a 52-week low of $108.00 and a 52-week high of $161.24. 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 has a market cap of $41.34 billion, a PE ratio of 26.05 and a beta of 0.91.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating 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 company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter last year, the company posted $1.14 earnings per share. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts forecast that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

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

Institutional Trading of Paychex

A number of hedge funds have recently modified their holdings of PAYX. Heartwood Wealth Advisors LLC acquired a new position in shares of Paychex in the third quarter valued at $25,000. Vermillion & White Wealth Management Group LLC bought a new stake in Paychex in the 3rd quarter valued at $27,000. NewSquare Capital LLC raised its stake in shares of Paychex by 83.8% in the 2nd quarter. NewSquare Capital LLC now owns 215 shares of the business services provider’s stock valued at $31,000 after buying an additional 98 shares in the last quarter. Stance Capital LLC acquired a new position in shares of Paychex in the 3rd quarter valued at $31,000. Finally, MMA Asset Management LLC bought a new position in shares of Paychex during the 3rd quarter worth about $32,000. Institutional investors own 83.47% of the company’s stock.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Several post‑earnings price targets still imply modest upside from the current level, suggesting some analysts see limited recovery potential after the cuts. (Stephens: $125 PT; JPMorgan: $125 PT; Morgan Stanley: $123 PT). Stephens Lowers PT
• Neutral Sentiment: Zacks published a metrics‑focused review of Paychex’s Q2, highlighting how revenue and EPS compare with estimates and year‑ago results — useful context but not a clear buy/sell signal on its own. Zacks Q2 Analysis
• Neutral Sentiment: Jefferies reiterated a Hold on PAYX, which signals continued caution from at least one major shop but does not add fresh negative action. Jefferies Hold
• Negative Sentiment: Benzinga reports that analysts have slashed forecasts following Paychex’s Q2 results, indicating downward revisions to near‑term earnings expectations that can pressure the stock if guidance or client trends weaken further. Benzinga: Analysts Slash Forecasts
• Negative Sentiment: JPMorgan cut its price target to $125 and moved to an Underweight rating — a clear negative read from a large shop that may influence institutional flows. JPMorgan PT Cut (Benzinga)
• Negative Sentiment: Morgan Stanley trimmed its target to $123 and moved to Equal Weight, another downgrade that contributes to the overall negative analyst tone. Morgan Stanley PT Cut

Paychex Company Profile

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.