Paychex (NASDAQ:PAYX) Stock Price Target Cut by Cantor Fitzgerald

Paychex (NASDAQ:PAYX) had its target price reduced by stock analysts at Cantor Fitzgerald from $112.00 to $96.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an “underweight” rating on the business services provider’s stock. Cantor Fitzgerald’s target price points to a potential downside of 3.33% from the stock’s current price.

Other research analysts have also recently issued reports about the stock. Morgan Stanley raised their target price on shares of Paychex from $107.00 to $109.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Weiss Ratings upgraded shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. UBS Group reduced their price target on shares of Paychex from $125.00 to $115.00 and set a “neutral” rating for the company in a research report on Thursday, September 24th. Wolfe Research raised shares of Paychex from an “underperform” rating to a “peer perform” rating in a research note on Wednesday, September 16th. Finally, Guggenheim reiterated a “neutral” rating on shares of Paychex in a research report on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Paychex currently has an average rating of “Hold” and an average target price of $127.59.

Paychex Stock Performance

Shares of NASDAQ PAYX opened at $99.31 on Monday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.23. The stock has a market capitalization of $35.35 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 2.08 and a beta of 0.82. The stock’s fifty day simple moving average is $117.95 and its 200 day simple moving average is $104.18. Paychex has a 52-week low of $85.45 and a 52-week high of $129.24.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, beating the consensus estimate of $1.32 by $0.02. Paychex had a return on equity of 52.78% and a net margin of 27.35%.The business had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the prior year, the business posted $1.22 earnings per share. Paychex’s revenue was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, sell-side analysts forecast that Paychex will post 5.96 earnings per share for the current fiscal year.

Insider Activity at Paychex

In related news, CFO Robert Schrader sold 2,600 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.60% of the company’s stock.

Institutional Trading of Paychex

Several large investors have recently added to or reduced their stakes in PAYX. State Street Corp raised its holdings in shares of Paychex by 2.6% during the 2nd quarter. State Street Corp now owns 14,411,341 shares of the business services provider’s stock valued at $1,417,067,000 after purchasing an additional 361,713 shares in the last quarter. Talon Private Wealth LLC acquired a new stake in shares of Paychex in the 2nd quarter valued at $220,000. Rench Wealth Management Inc. boosted its holdings in Paychex by 1.2% in the second quarter. Rench Wealth Management Inc. now owns 56,948 shares of the business services provider’s stock worth $5,600,000 after purchasing an additional 650 shares in the last quarter. Cidel Asset Management Inc. boosted its holdings in Paychex by 15.2% in the second quarter. Cidel Asset Management Inc. now owns 2,529 shares of the business services provider’s stock worth $249,000 after purchasing an additional 333 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC increased its position in Paychex by 19.5% during the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 13,720 shares of the business services provider’s stock worth $1,349,000 after buying an additional 2,238 shares during the last quarter. 83.47% of the stock is owned by institutional investors.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal 2027 first-quarter revenue increased approximately 6% to $1.63 billion, while adjusted earnings per share rose 10% to $1.34, topping the $1.32 consensus estimate. Paychex maintained its fiscal 2027 EPS outlook of approximately $5.90 to $6.01. Paychex segment mix and guidance article
• Positive Sentiment: PEO and artificial-intelligence initiatives are gaining attention. Management highlighted strength in its professional employer organization business and continued investment in AI, which could support longer-term productivity and growth. Paychex earnings call highlights
• Neutral Sentiment: Small-business employment remained stable. The Paychex Small Business Employment Watch showed a modest 0.02-point increase in September to 99.15, suggesting a broadly steady employment backdrop for Paychex’s core customer base. Paychex Small Business Employment Watch
• Negative Sentiment: Investors reacted negatively to a shift in segment mix. Although results beat estimates, the composition of growth apparently raised concerns about the durability and quality of earnings, contributing to the sharp recent decline in PAYX shares.
• Negative Sentiment: Analysts have reduced valuation targets. Cantor Fitzgerald cut its target to $96 and retained an underweight rating, while Robert W. Baird lowered its target to $110 with a neutral rating; TD Cowen also reduced its target to $105. These actions reinforce near-term uncertainty. TD Cowen price target article
• Negative Sentiment: The dividend’s appeal is offset by balance-sheet risk. Paychex offers a yield nearly twice that of ADP, but billions of dollars in acquisition-related debt raise questions about the sustainability and attractiveness of the payout.

About Paychex

Paychex, Inc (NASDAQ: PAYX) provides payroll, human resources and employee benefits solutions for businesses of varying sizes. Its services are designed to help employers manage workforce administration, compliance and employee-related processes through integrated software and professional support.

The company’s offerings include payroll processing, time and attendance tracking, human resources administration, recruiting and onboarding tools, benefits administration, retirement services, workers’ compensation and business insurance solutions.