Paychex’s (PAYX) “Sector Perform” Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada restated their sector perform rating on shares of Paychex (NASDAQ:PAYX) in a research report sent to investors on Thursday morning,Benzinga reports. The brokerage currently has a $130.00 target price on the business services provider’s stock.

Several other research analysts also recently issued reports on PAYX. Cantor Fitzgerald reiterated an “underweight” rating and set a $107.00 price target on shares of Paychex in a report on Monday, July 20th. Wolfe Research raised Paychex from an “underperform” rating to a “peer perform” rating in a report on Wednesday, September 16th. JPMorgan Chase & Co. upgraded Paychex from an “underweight” rating to a “neutral” rating and boosted their price objective for the stock from $105.00 to $115.00 in a research report on Thursday. Guggenheim reaffirmed a “neutral” rating on shares of Paychex in a report on Thursday, September 17th. Finally, Citigroup increased their target price on Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $129.12.

Paychex Trading Down 0.2%

Shares of Paychex stock opened at $101.37 on Thursday. The firm has a market capitalization of $36.06 billion, a PE ratio of 20.11, a price-to-earnings-growth ratio of 2.13 and a beta of 0.82. The company has a current ratio of 1.28, a quick ratio of 1.26 and a debt-to-equity ratio of 1.23. The firm’s 50 day moving average is $118.52 and its 200 day moving average is $104.08. Paychex has a 1 year low of $85.45 and a 1 year high of $130.32.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.02. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period in the prior year, the company earned $1.22 EPS. The firm’s quarterly 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. Equities research analysts forecast that Paychex will post 5.96 earnings per share for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, July 28th were issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date was Tuesday, July 28th. Paychex’s dividend payout ratio is presently 97.34%.

Insider Transactions at Paychex

In related news, CFO Robert Schrader sold 2,600 shares of the firm’s stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. This trade represents a 12.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Paychex

Several institutional investors and hedge funds have recently made changes to their positions in PAYX. Capital International Investors raised its position in shares of Paychex by 59.1% during the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after acquiring an additional 11,243,295 shares during the last quarter. BlackRock Inc. acquired a new stake in Paychex during the 2nd quarter valued at approximately $2,728,970,000. State Street Corp increased its position in 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 during the period. XXEC Inc. bought a new position in Paychex during the 2nd quarter worth approximately $1,123,016,000. Finally, Geode Capital Management LLC raised its holdings in Paychex by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider’s stock worth $1,093,958,000 after purchasing an additional 78,760 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex News Roundup

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex reported fiscal Q1 2027 adjusted earnings of $1.34 per share, above the $1.32 analyst consensus, while revenue reached approximately $1.63 billion and increased 5.9% year over year. Wider margins and higher earnings provided fundamental support. Paychex Q1 FY27 earnings
• Positive Sentiment: Management reaffirmed its fiscal 2027 outlook and highlighted faster PEO conversions, expanding artificial-intelligence adoption, and expected PEO and insurance growth of 7% to 8%. Paychex guidance update
• Positive Sentiment: Some analysts still view the selloff as an attractive entry point. RBC maintained a Sector Perform rating with a $130 target, while JPMorgan upgraded Paychex from Underweight to Neutral and raised its target to $115.
• Neutral Sentiment: Several analysts lowered their price targets following the results, including Stephens to $113, Stifel to $112, Jefferies to $110, and UBS to $115. These firms retained neutral, equal-weight, or hold ratings, suggesting valuation upside but limited near-term conviction.
• Neutral Sentiment: Paychex’s dividend remains an investor focus after the stock’s double-digit recent decline; coverage of the payout is being assessed through the company’s cash flow and earnings outlook.
• Negative Sentiment: The main pressure is decelerating growth. Analysts expect second-quarter revenue of roughly $1.6 billion, implying growth of about 4%, slower than the first quarter and materially below last year’s pace. Why Paychex stock slumped
• Negative Sentiment: The earnings beat and maintained guidance were insufficient to offset concerns about slowing sales momentum, leading to a sharp post-earnings selloff and continued investor caution.

Paychex Company Profile

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.