Paychex (NASDAQ:PAYX) Price Target Cut to $125.00 by Analysts at Robert W. Baird
by Danessa Lincoln · The Markets DailyPaychex (NASDAQ:PAYX – Get Free Report) had its target price dropped by analysts at Robert W. Baird from $148.00 to $125.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the business services provider’s stock. Robert W. Baird’s price objective would suggest a potential upside of 33.89% from the stock’s current price.
Several other research analysts have also issued reports on the stock. Royal Bank Of Canada decreased their price target on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating on the stock in a research report on Thursday, March 19th. TD Cowen reissued a “hold” rating on shares of Paychex in a research note on Monday, December 1st. Wells Fargo & Company decreased their target price on Paychex from $128.00 to $116.00 and set an “underweight” rating for the company in a research report on Tuesday, December 9th. Stephens lowered their price target on Paychex from $135.00 to $125.00 and set an “equal weight” rating on the stock in a report on Monday, December 22nd. Finally, Guggenheim assumed coverage on Paychex in a research report on Thursday, March 19th. They set a “neutral” rating on the stock. One analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $119.94.
Check Out Our Latest Report on PAYX
Paychex Stock Performance
PAYX stock opened at $93.36 on Thursday. The stock’s fifty day moving average is $97.38 and its two-hundred day moving average is $111.39. Paychex has a 1 year low of $86.89 and a 1 year high of $161.24. The stock has a market capitalization of $33.51 billion, a price-to-earnings ratio of 21.17 and a beta of 0.91. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27.
Paychex (NASDAQ:PAYX – Get Free Report) last issued its quarterly earnings data 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. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s revenue was up 19.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.49 earnings per share. On average, research analysts predict that Paychex will post 4.99 EPS for the current year.
Paychex announced that its board has initiated a share repurchase plan on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of PAYX. Heartwood Wealth Advisors LLC acquired a new stake in shares of Paychex during the 3rd quarter valued at about $25,000. Vermillion & White Wealth Management Group LLC acquired a new position in Paychex in the third quarter worth approximately $27,000. Cornerstone Planning Group LLC raised its position in Paychex by 957.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. Stance Capital LLC acquired a new stake in Paychex in the third quarter valued at approximately $31,000. Finally, Hilton Head Capital Partners LLC bought a new stake in Paychex in the fourth quarter worth approximately $31,000. 83.47% of the stock is owned by institutional investors and hedge funds.
Key Paychex News
Here are the key news stories impacting Paychex this week:
- Positive Sentiment: Q3 beats — Paychex reported adjusted EPS $1.71 (vs. ~$1.67 est.) and revenue $1.81B, +20% Y/Y, beating sales/earnings expectations and citing broad segment strength. Zacks: PAYX Beats Q3
- Positive Sentiment: Revenue drivers — Management highlighted AI advisory services and contribution from the Paycor acquisition as key growth levers helping revenue acceleration. Benzinga: Revenue Soars on AI/Paycor
- Positive Sentiment: Market reaction — Multiple outlets note a strong trading response after the print, with shares rising as investors reward top-line beat and execution on integration. MarketWatch: Outperforms Peers
- Positive Sentiment: Upbeat guidance/comments — Analysts and coverage pieces emphasize double-digit bottom-line growth and an encouraging FY outlook tied to product uptake and scale benefits. Yahoo Finance: Earnings Highlights
- Neutral Sentiment: Earnings call/transcript available — Management commentary and the full call transcript are live for detail on margin outlook and integration timing; investors will parse guidance and expense cadence. Seeking Alpha: Call Transcript
- Neutral Sentiment: Valuation talk — Some analysts argue the stock already prices in risks and view current levels as offering value after the year decline; this frames differing investor time horizons. Seeking Alpha: Valuation Piece
- Neutral Sentiment: Pre-earnings focus — Coverage ahead of the print emphasized Paycor integration as a key watch item; investors should monitor cadence of cost synergies. Investing.com: Paycor Integration Focus
- Negative Sentiment: Cost and margin pressure — Some reports flag rising costs that pressured margins, prompting investor concern despite top-line strength. Blockonomi: Cost Pressures
- Negative Sentiment: Bearish coverage persists — Cantor Fitzgerald maintained a sell rating ahead of the report, signaling lingering skepticism among some sell‑side analysts. Globe & Mail: Cantor Fitzgerald
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.