Wells Fargo has initiated coverage on Paychex Inc (PAYX), assigning the company an Underweight rating. This marks the firm's first assessment of the company's investment potential, reflecting its analysis of Paychex's business model and industry landscape.
Headquartered in Rochester, New York, Paychex provides comprehensive human capital management solutions tailored for small and medium-sized businesses. The firm employs approximately 19,000 individuals and offers a range of services, including payroll, human resources, insurance, and retirement solutions. Its proprietary Paychex Flex platform and SurePayroll services are designed to support clients in managing their human resources needs effectively.
As of October 21, 2025, Paychex shares are trading at $111.64. The company's financial snapshot reveals a market capitalization of $40.6 billion, a price-to-earnings ratio of 25.16, and an earnings per share figure of $4.46. Notably, the dividend yield stands at an impressive 382.9%.
Paychex is scheduled to announce its next earnings on June 22, 2026, with analysts estimating earnings per share of $1.35 and revenues of $1.7 billion. Recent performance has shown mixed results, with the most recent quarter (Q1 2026) reporting earnings of $1.22, slightly below the expected $1.23.
Analyst consensus currently indicates 1 Strong Buy, 0 Buy, 16 Hold, 3 Sell, and 3 Strong Sell ratings, suggesting a general view of Hold among analysts. The move underscores the variability in analyst opinions, which can shift as new information becomes available.
Investment decisions should consider a variety of factors, including company fundamentals and market conditions, rather than relying solely on analyst ratings.