Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $240.00 by Analysts at Stifel Nicolaus

Automatic Data Processing (NASDAQ:ADP) had its target price dropped by analysts at Stifel Nicolaus from $270.00 to $240.00 in a report released on Thursday,MarketScreener reports. Stifel Nicolaus’ price target indicates a potential upside of 14.54% from the company’s current price.

Other research analysts also recently issued reports about the company. Wells Fargo & Company dropped their target price on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research note on Friday, March 27th. JPMorgan Chase & Co. lowered their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Guggenheim initiated coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective for the company. TD Cowen boosted their price objective on Automatic Data Processing from $208.00 to $216.00 and gave the company a “hold” rating in a report on Thursday. Finally, Cantor Fitzgerald decreased their price objective on Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $254.40.

Automatic Data Processing Trading Down 1.1%

ADP traded down $2.40 during trading on Thursday, hitting $209.54. 244,022 shares of the stock were exchanged, compared to its average volume of 3,417,466. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $329.93. The firm has a 50 day simple moving average of $206.67 and a 200 day simple moving average of $238.64. The firm has a market cap of $84.37 billion, a price-to-earnings ratio of 19.57 and a beta of 0.85. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.03 and a current ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period last year, the business posted $3.06 EPS. The business’s revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities analysts expect that Automatic Data Processing will post 11.06 EPS for the current year.

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

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 1,809 shares of company stock worth $410,410. Corporate insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Automatic Data Processing by 0.9% during 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 buying an additional 389,451 shares in the last quarter. State Street Corp increased its stake in Automatic Data Processing by 0.7% during the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock worth $4,903,769,000 after buying an additional 133,039 shares in the last quarter. Geode Capital Management LLC increased its stake in Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock worth $2,977,777,000 after buying an additional 136,876 shares in the last quarter. Capital Research Global Investors grew its position in shares of Automatic Data Processing by 4.6% in the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock valued at $2,159,088,000 after purchasing an additional 372,413 shares in the last quarter. Finally, Wellington Management Group LLP grew its position in shares of Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock valued at $1,896,944,000 after purchasing an additional 544,210 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing News Summary

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)

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.