Paychex (NASDAQ:PAYX) Given New $125.00 Price Target at Robert W. Baird

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

Other equities analysts have also issued research reports about the company. Guggenheim started coverage on Paychex in a research note on Thursday, March 19th. They set a “neutral” rating on the stock. Citigroup dropped their price objective on Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday, December 22nd. BMO Capital Markets cut their target price on shares of Paychex from $121.00 to $103.00 and set a “market perform” rating on the stock in a research report on Friday, March 13th. Wolfe Research reduced their target price on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a research note on Wednesday, December 10th. Finally, Royal Bank Of Canada lowered their price target on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating for the company in a research report on Thursday, March 19th. One equities research 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. According to data from MarketBeat, Paychex currently has an average rating of “Reduce” and a consensus price target of $114.56.

Paychex Stock Up 0.2%

NASDAQ:PAYX opened at $93.59 on Thursday. The stock’s fifty day moving average price is $97.04 and its two-hundred day moving average price is $111.26. 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 company has a market cap of $33.60 billion, a price-to-earnings ratio of 20.61 and a beta of 0.91.

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

Paychex announced that its board has approved a share repurchase plan on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors 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 4.6%. The ex-dividend date was Wednesday, January 28th. Paychex’s dividend payout ratio is currently 97.96%.

Hedge Funds Weigh In On Paychex

Institutional investors have recently modified their holdings of the stock. Heartwood Wealth Advisors LLC bought a new stake in shares of Paychex in the 3rd quarter valued at about $25,000. Vermillion & White Wealth Management Group LLC bought a new position in Paychex during the 3rd quarter worth approximately $27,000. Stance Capital LLC bought a new position in Paychex during the 3rd quarter worth approximately $31,000. MMA Asset Management LLC acquired a new position in Paychex during the third quarter valued at approximately $32,000. Finally, Westfuller Advisors LLC bought a new stake in Paychex in the third quarter valued at approximately $35,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Paychex

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.