Automatic Data Processing (NASDAQ:ADP – Free Report) had its price target trimmed by Jefferies Financial Group from $230.00 to $190.00 in a research note published on Thursday,MarketScreener reports.
A number of other research analysts have also recently weighed in on ADP. JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald dropped their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a research note on Wednesday. Stifel Nicolaus decreased their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday. TD Cowen lifted their price objective on shares of Automatic Data Processing from $208.00 to $216.00 and gave the stock a “hold” rating in a report on Thursday. Finally, Citigroup decreased their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $254.40.
Read Our Latest Stock Analysis on ADP
Automatic Data Processing Price Performance
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last posted its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period last year, the firm posted $3.06 EPS. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts expect that Automatic Data Processing will post 11.06 EPS for the current year.
Automatic Data Processing declared that its board has approved a share repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.
Automatic Data Processing Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing’s dividend payout ratio is 65.38%.
Insider Transactions at Automatic Data Processing
In other news, VP David Foskett sold 266 shares of the firm’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,809 shares of company stock worth $410,410. Insiders own 0.20% of the company’s stock.
Institutional Investors Weigh In On Automatic Data Processing
Several hedge funds and other institutional investors have recently modified their holdings of ADP. CGC Financial Services LLC grew its holdings in Automatic Data Processing by 13.7% during the 3rd quarter. CGC Financial Services LLC now owns 323 shares of the business services provider’s stock valued at $95,000 after buying an additional 39 shares in the last quarter. Coston McIsaac & Partners boosted its holdings in Automatic Data Processing by 13.2% during the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider’s stock valued at $98,000 after acquiring an additional 39 shares during the period. Northcape Wealth Management LLC lifted its holdings in shares of Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider’s stock worth $1,692,000 after buying an additional 39 shares during the period. Private Advisory Group LLC lifted its holdings in shares of Automatic Data Processing by 4.8% in the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider’s stock worth $254,000 after buying an additional 40 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC increased its position in Automatic Data Processing by 0.3% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider’s stock valued at $4,455,000 after buying an additional 41 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.
Key Automatic Data Processing News
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: Q3 beat and guidance lift — ADP reported EPS of $3.37 and raised FY2026 adjusted EPS growth to 10%–11% and revenue growth to 6%–7%, supporting revenue resiliency and higher forward earnings expectations. ADP forecasts FY 2026 adjusted EPS growth of 10%-11% as it raises revenue
- Positive Sentiment: Company commentary highlighted strong payroll services demand and AI-related gains on the earnings call, reinforcing the revenue/operating leverage story. ADP Earnings Call: AI Gains, Guidance Raised
- Neutral Sentiment: UBS raised its price target to $218 with a “neutral” rating — a modest upside relative to current levels that signals limited near-term analyst enthusiasm. Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $218.00 at UBS Group
- Neutral Sentiment: TD Cowen nudged its target to $216 (hold), another small upward tweak that keeps expectations broadly in the “flat to modest upside” camp. TD Cowen Issues Positive Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price
- Neutral Sentiment: Cantor Fitzgerald cut its target to $244 from $306 but retained an overweight rating — still implying upside, though the reset tempering upside expectations from prior levels. Cantor Fitzgerald adjusts price target on Automatic Data Processing
- Negative Sentiment: Citigroup lowered its target meaningfully (from $265 to $230) and kept a neutral stance — a direct headwind that likely weighs on sentiment despite the beat. Automatic Data Processing (NASDAQ:ADP) Given New $230.00 Price Target at Citigroup
- Negative Sentiment: Mixed analyst moves and valuation debate — while some targets were raised, several were trimmed and commentators are re-assessing valuation after the recent rebound, creating short-term uncertainty. Assessing Automatic Data Processing’s Valuation After Recent Share Price Rebound
- Negative Sentiment: Technical/market context: ADP’s 50-day SMA sits below the 200-day SMA and current price sits well under its one-year high — technical resistance and mixed macro tone may pressure the stock despite fundamentals. (Company filings and market data)
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.
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