Citigroup Upgrades Paychex to Buy, Sets $140 Target

Citigroup analyst Bryan Keane has upgraded Paychex, Inc. (NasdaqGS: PAYX) to a buy rating, setting a price target of $140. The announcement was made on June 15, 2026. Paychex shares were recently trading at $100.63.

Analysts Set New Price Targets

On June 15, 2026, Citigroup's Bryan Keane upgraded Paychex to a buy rating and set a price target of $140. This change reflects a positive outlook on the company's future performance. Earlier, on June 8, 2026, TD Cowen maintained its hold rating with a $98 target. UBS also held its position with a $94 target on April 13, 2026. The consensus rating for Paychex is hold, with an average target price of $105.07 from 14 analysts.

Other Institutional Activity in Paychex

Several major funds have recently adjusted their positions in Paychex. BlackRock, Inc. increased its holdings by 536,054 shares, ending with 28,414,452 shares valued at approximately $2.62 billion. Vanguard Capital Management LLC holds 20,965,270 shares worth about $1.93 billion. Meanwhile, State Street Corp added 61,235 shares to hold 14,049,628 shares valued at around $1.29 billion. On the other hand, Capital International Investors reduced its stake by 316,488 shares, bringing its total to 29,948,686 shares worth about $2.76 billion.

Paychex Stock Snapshot

Shares of Paychex, Inc. (NasdaqGS: PAYX) traded near $100.63 recently. The company has a market cap of about $36.1 billion and a P/E ratio of 22.2. Its forward P/E is 17.1, indicating expectations of future earnings growth. Paychex's stock has seen a 52-week low of $85.45 and a high of $154.90, with a 50-day moving average of $93.88 and a 200-day moving average of $107.51. The company's current ratio is 1.15, and its debt-to-equity ratio is 124.91.

Recent Earnings

Paychex reported revenue of approximately $3.97 billion, with a growth rate of 19.9%. The company achieved a net margin of 26.63% and an earnings per share (EPS) of $4.53. The next earnings report is expected on June 24, 2026.

Dividend

Paychex offers an annual dividend rate of $4.76, yielding 4.73%. The dividend payout ratio stands at 95.36%, indicating a significant return to shareholders.

Insider Buying and Selling at Paychex, Inc.

Recent insider transactions at Paychex include Thomas Golisano selling 109,300 shares at $91.27 on May 6, 2026, and another 1,032 shares at $96.98 on June 1, 2026. Elizabeth Roaldsen, a Senior Vice President, sold 459 shares at $90.00 on May 13, 2026. Joseph Velli bought 10,220 shares at $60.59 on May 8, 2026.

About Paychex, Inc.

Paychex, Inc., based in Rochester, New York, provides human capital management solutions for payroll, employee benefits, and human resources services. The company operates in the United States, Europe, and India, offering a range of services from payroll processing to HR compliance and insurance solutions. Led by CEO John B. Gibson Jr., Paychex serves small to medium-sized businesses with a focus on innovative and efficient service delivery.

Bottom Line

Citigroup's upgrade of Paychex to a buy rating with a $140 price target highlights confidence in the company's prospects. Investors often track such analyst actions for insights into a stock's potential. It's important to remember that these ratings are based on past data and projections may not reflect current market conditions.