Automatic Data Processing (NASDAQ:ADP) Price Target Lowered to $270.00 at Stifel Nicolaus

Automatic Data Processing (NASDAQ:ADP) had its target price reduced by research analysts at Stifel Nicolaus from $280.00 to $270.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus’ price target indicates a potential upside of 16.70% from the company’s previous close.

Several other brokerages have also recently issued reports on ADP. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Morgan Stanley reduced their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Finally, Citigroup decreased their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Two investment 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. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus price target of $290.00.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $231.36 on Monday. The stock has a market capitalization of $93.15 billion, a price-to-earnings ratio of 22.25 and a beta of 0.85. Automatic Data Processing has a one year low of $230.27 and a one year high of $329.93. The company’s 50-day simple moving average is $256.60 and its 200-day simple moving average is $275.31. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

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

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback program on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP David Kwon sold 900 shares of the firm’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the transaction, the vice president directly owned 11,993 shares in the company, valued at $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,249 shares of company stock valued at $589,852 over the last three months. Corporate insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently bought and sold shares of ADP. Vanguard Group Inc. lifted its stake in shares of Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after acquiring an additional 389,451 shares during the period. State Street Corp raised its holdings in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after purchasing an additional 187,415 shares in the last quarter. Geode Capital Management LLC raised its holdings in Automatic Data Processing by 3.1% during the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock worth $3,511,698,000 after purchasing an additional 345,798 shares in the last quarter. Capital Research Global Investors lifted its position in Automatic Data Processing by 1.5% in the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after purchasing an additional 116,074 shares during the period. Finally, Wellington Management Group LLP boosted its stake in Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

About Automatic Data Processing

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.