Paychex (NASDAQ:PAYX) Price Target Lowered to $125.00 at JPMorgan Chase & Co.

Paychex (NASDAQ:PAYX) had its price objective reduced by JPMorgan Chase & Co. from $140.00 to $125.00 in a research note released on Monday morning,Benzinga reports. They currently have an underweight rating on the business services provider’s stock.

PAYX has been the topic of several other research reports. BMO Capital Markets cut their price objective on Paychex from $140.00 to $121.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 9th. Robert W. Baird lowered their price target on Paychex from $153.00 to $148.00 and set a “neutral” rating for the company in a report on Wednesday, October 1st. Morgan Stanley reduced their price objective on Paychex from $133.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Monday. Stifel Nicolaus decreased their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. Finally, Cowen reiterated a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Fourteen research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $127.00.

Paychex Trading Up 2.3%

NASDAQ PAYX opened at $114.88 on Monday. The company has a market capitalization of $41.34 billion, a price-to-earnings ratio of 26.05 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27. Paychex has a 12 month low of $108.00 and a 12 month high of $161.24. The company’s fifty day moving average price is $115.83 and its two-hundred day moving average price is $131.30.

Paychex (NASDAQ:PAYX) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the firm earned $1.14 EPS. The company’s revenue 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, research analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th were given a $1.08 dividend. The ex-dividend date of this dividend was Friday, November 7th. This represents a $4.32 annualized dividend and a yield of 3.8%. Paychex’s dividend payout ratio (DPR) is currently 97.96%.

Hedge Funds Weigh In On Paychex

Several hedge funds and other institutional investors have recently modified their holdings of PAYX. Vanguard Group Inc. increased its holdings in shares of Paychex by 17.2% in the 3rd 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 period. Norges Bank bought a new position in Paychex in the 2nd quarter worth about $302,244,000. Select Equity Group L.P. increased its stake in shares of Paychex by 99.0% in the first quarter. Select Equity Group L.P. now owns 3,494,312 shares of the business services provider’s stock valued at $539,102,000 after purchasing an additional 1,738,372 shares during the period. Voloridge Investment Management LLC bought a new stake in shares of Paychex during the third quarter valued at approximately $117,809,000. Finally, Marshall Wace LLP boosted its position in shares of Paychex by 179.5% during the second quarter. Marshall Wace LLP now owns 1,078,328 shares of the business services provider’s stock worth $156,854,000 after buying an additional 692,533 shares during the period. Institutional investors and hedge funds own 83.47% of the company’s stock.

Key Paychex News

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

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.