Automatic Data Processing (NASDAQ:ADP) Given New $286.00 Price Target at Morgan Stanley

Automatic Data Processing (NASDAQ:ADP) had its price target hoisted by analysts at Morgan Stanley from $240.00 to $286.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has an “equal weight” rating on the business services provider’s stock. Morgan Stanley’s price objective would suggest a potential upside of 9.55% from the company’s previous close.

A number of other research firms have also weighed in on ADP. Cantor Fitzgerald raised their target price on Automatic Data Processing from $244.00 to $295.00 and gave the company an “overweight” rating in a report on Wednesday, July 22nd. Stifel Nicolaus increased their target price on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a research note on Thursday. TD Cowen upped their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. Argus dropped their price objective on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research note on Tuesday, May 5th. Finally, Mizuho reduced their price objective on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $268.36.

Automatic Data Processing Stock Down 4.5%

Shares of Automatic Data Processing stock traded down $12.30 during trading on Thursday, hitting $261.07. 1,263,422 shares of the stock traded hands, compared to its average volume of 3,147,027. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $315.26. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The stock has a market cap of $104.36 billion, a P/E ratio of 24.36 and a beta of 0.83. The company has a fifty day moving average price of $234.18 and a two-hundred day moving average price of $224.32.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts predict that Automatic Data Processing will post 11.08 EPS for the current fiscal year.

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors have recently made changes to their positions in ADP. Horizon Investments LLC lifted its stake in shares of Automatic Data Processing by 34.1% during the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider’s stock valued at $6,725,000 after acquiring an additional 6,655 shares during the period. Compass Capital Management Inc. boosted its position in Automatic Data Processing by 3.0% in the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider’s stock valued at $52,400,000 after buying an additional 5,899 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Automatic Data Processing by 27.0% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 234,273 shares of the business services provider’s stock valued at $60,262,000 after purchasing an additional 49,774 shares during the last quarter. Jefferies Financial Group Inc. lifted its holdings in shares of Automatic Data Processing by 439.2% in the 4th quarter. Jefferies Financial Group Inc. now owns 51,341 shares of the business services provider’s stock worth $13,206,000 after purchasing an additional 41,820 shares in the last quarter. Finally, DNB Asset Management AS lifted its holdings in Automatic Data Processing by 11.1% during the fourth quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider’s stock worth $39,278,000 after acquiring an additional 15,287 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Quarterly results beat expectations: ADP reported fiscal Q4 earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue rose 6.8% year over year to $5.47 billion, exceeding forecasts of $5.44 billion. Earnings increased from $2.26 per share in the prior-year quarter, supported by broad-based growth, client funds income and margin improvement. ADP Q4 Earnings Beat Estimates
• Positive Sentiment: Fiscal 2027 outlook remains constructive: Management guided to earnings per share of $12.12-$12.34 and revenue of $23.0-$23.3 billion, broadly in line with Wall Street expectations. The company expects continued growth in employer services and human resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Analysts raised price targets: Guggenheim increased its target from $270 to $300 and upgraded ADP to “buy.” Wells Fargo raised its target from $248 to $283 while maintaining an “equal weight” rating, and BMO lifted its target from $248 to $305 but retained a “market perform” view. These revisions indicate improved earnings expectations, although ratings remain mixed.
• Neutral Sentiment: Post-earnings valuation debate: Recent commentary says the earnings-driven rally has closed much of ADP’s valuation discount. Some analysts still view the stock as attractive, but the stronger share price leaves less room for upside if growth or guidance moderates. ADP Post-Earnings Valuation Analysis
• Negative Sentiment: Broader market weakness is weighing on the stock: A sharp oil-price spike tied to renewed U.S.-Iran tensions pressured the Nasdaq and broader equities ahead of the Federal Reserve’s rate decision, potentially offsetting ADP’s company-specific positives.

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.