Morgan Stanley Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $274.00

Automatic Data Processing (NASDAQ:ADP) had its price target trimmed by Morgan Stanley from $311.00 to $274.00 in a report released on Thursday,Benzinga reports. The firm currently has an equal weight rating on the business services provider’s stock.

Several other analysts also recently weighed in on ADP. Citigroup cut their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday. JPMorgan Chase & Co. decreased their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Stifel Nicolaus reduced their price target on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a research report on Thursday. Finally, Wells Fargo & Company reduced their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $295.38.

Automatic Data Processing Price Performance

ADP opened at $246.82 on Thursday. The stock has a market capitalization of $99.83 billion, a P/E ratio of 23.73 and a beta of 0.86. The stock has a 50-day moving average price of $258.36 and a 200-day moving average price of $277.79. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12-month low of $243.68 and a 12-month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its board has authorized a share buyback plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.8%. Automatic Data Processing’s payout ratio is 65.38%.

Insider Transactions at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president directly owned 11,993 shares of the company’s stock, valued at $3,118,180. This represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 2,249 shares of company stock valued at $589,852. 0.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the 3rd quarter worth approximately $25,000. Harbor Asset Planning Inc. purchased a new stake in Automatic Data Processing in the 2nd quarter valued at $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $26,000. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $27,000. Finally, Solstein Capital LLC purchased a new position in Automatic Data Processing in the second quarter worth approximately $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Q4 / Q2 results and guidance — ADP beat revenue and EPS estimates, showed broad-based growth and margin stability, and set FY26 EPS guidance above street projections; management reiterated an upbeat outlook and a buyback. These execution and capital-allocation signals support the stock’s upward reaction. ADP Q4 Deep Dive
• Positive Sentiment: Earnings call takeaways — summaries and highlights (management tone, buyback, and stronger Employer Services performance) reinforced the beat-and-raise narrative that underpins near-term fundamentals. ADP Earnings Call Highlights
• Neutral Sentiment: New coverage and analyst reports — Cantor Fitzgerald initiated coverage and independent analyst notes (Argus) provide fresh research flow that can increase trading interest but are mixed in directional impact. Coverage Initiated at Cantor Fitzgerald Analyst Report: Automatic Data Processing Inc.
• Negative Sentiment: Multiple price‑target cuts and downgrades — Morgan Stanley, Citigroup, JPMorgan, Wells Fargo and Stifel trimmed targets and moved to neutral/underweight/hold stances, signaling reduced analyst conviction and pressuring investor sentiment despite upside still implied by some revised targets. Benzinga coverage of analyst actions
• Negative Sentiment: 52‑week low headline — reports that ADP hit a 52‑week low attract attention and can trigger short-term selling or defensive positioning by momentum and quant funds. Adp stock hits 52-week low

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.