Paychex (NASDAQ:PAYX) Given New $100.00 Price Target at JPMorgan Chase & Co.

Paychex (NASDAQ:PAYX) had its target price lowered by JPMorgan Chase & Co. from $125.00 to $100.00 in a report published on Thursday morning,Benzinga reports. The brokerage currently has an underweight rating on the business services provider’s stock.

Other research analysts have also recently issued research reports about the stock. BMO Capital Markets decreased their price target on shares of Paychex from $121.00 to $103.00 and set a “market perform” rating on the stock in a report on Friday, March 13th. Stephens dropped their price objective on Paychex from $135.00 to $125.00 and set an “equal weight” rating for the company in a research note on Monday, December 22nd. Guggenheim began coverage on Paychex in a research report on Thursday, March 19th. They set a “neutral” rating for the company. Royal Bank Of Canada decreased their target price on Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 19th. Finally, Cantor Fitzgerald raised Paychex to a “strong sell” rating in a report on Tuesday, January 27th. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $114.56.

Paychex Price Performance

Shares of NASDAQ:PAYX opened at $93.59 on Thursday. The company has a 50 day moving average of $97.04 and a 200 day moving average of $111.26. The company has a current ratio of 1.26, a quick ratio of 1.27 and a debt-to-equity ratio of 1.13. The stock has a market cap of $33.60 billion, a P/E ratio of 20.61 and a beta of 0.91. Paychex has a 12 month low of $86.89 and a 12 month high of $161.24.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analysts’ expectations of $1.78 billion. During the same period in the prior year, the company posted $1.49 EPS. The business’s revenue for the quarter was up 19.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a $1.08 dividend. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.6%. Paychex’s payout ratio is 97.96%.

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

Institutional Investors Weigh In On Paychex

Several hedge funds have recently added to or reduced their stakes in the company. Heartwood Wealth Advisors LLC purchased a new position in shares of Paychex in the 3rd quarter worth about $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in shares of Paychex during the 3rd quarter valued at about $27,000. Stance Capital LLC bought a new stake in Paychex in the 3rd quarter worth approximately $31,000. MMA Asset Management LLC bought a new stake in Paychex in the 3rd quarter worth approximately $32,000. Finally, Westfuller Advisors LLC purchased a new stake in Paychex in the third quarter worth approximately $35,000. Institutional investors own 83.47% of the company’s stock.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q3 beat: PAYX reported EPS of $1.71 (vs. $1.67 est.) and revenue of $1.81B (+20% YoY), demonstrating demand and top-line momentum that supports recurring-service growth. Zacks: Paychex’s Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Growth catalysts: Management highlighted AI initiatives and the Paycor acquisition as drivers of advisory and PEO growth that could expand addressable market and services revenue over time. MSN: PAYX Q1 deep dive: AI initiatives and Paycor integration
• Neutral Sentiment: Analysts largely kept neutral/hold ratings after the print — several firms reiterated balanced views citing solid fundamentals but ongoing macro and execution risks. That keeps near-term analyst guidance mixed rather than uniformly bullish. TipRanks: Solid fundamentals but macro and AI headwinds
• Negative Sentiment: Price-target cuts and downgrades: Multiple major firms trimmed targets and/or ratings this morning — JPMorgan to $100 (underweight), Citigroup to $99 (neutral), Wells Fargo to $95 (underweight), TD Cowen to $95 (hold). Those moves increase downside/near-term selling pressure despite the beat. Benzinga: Analyst price-target updates
• Negative Sentiment: Margin/cost concerns: Some coverage noted rising costs and margin pressure despite robust revenue growth — investors are attentive to whether operating leverage will recover. That commentary contributed to volatile trading after the report. Blockonomi: Cost pressures overshadow performance

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.