Automatic Data Processing (NASDAQ:ADP) Given New $287.00 Price Target at Citigroup

Automatic Data Processing (NASDAQ:ADP) had its price objective lifted by investment analysts at Citigroup from $230.00 to $287.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a “neutral” rating on the business services provider’s stock. Citigroup’s target price would indicate a potential upside of 8.89% from the company’s current price.

ADP has been the subject of several other research reports. Robert W. Baird dropped their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. UBS Group increased their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Jefferies Financial Group reduced their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research report on Wednesday. Finally, Argus dropped their price objective on shares of 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. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $272.43.

Automatic Data Processing Price Performance

NASDAQ ADP traded down $9.79 during trading hours on Thursday, reaching $263.57. 1,451,667 shares of the stock traded hands, compared to its average volume of 3,148,426. The stock has a 50 day simple moving average of $234.18 and a two-hundred day simple moving average of $224.32. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $315.26. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market cap of $105.36 billion, a price-to-earnings ratio of 24.56 and a beta of 0.83.

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

Institutional Trading of Automatic Data Processing

A number of institutional investors have recently made changes to their positions in ADP. Regent Peak Wealth Advisors LLC grew its position in Automatic Data Processing by 3.4% during the second quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider’s stock valued at $475,000 after buying an additional 69 shares during the period. Bank & Trust Co raised its holdings in Automatic Data Processing by 1.3% in the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider’s stock worth $875,000 after purchasing an additional 50 shares during the period. Annex Advisory Services LLC lifted its position in Automatic Data Processing by 3.9% during the second quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider’s stock valued at $660,000 after purchasing an additional 111 shares in the last quarter. Whitener Capital Management Inc. bought a new stake in Automatic Data Processing during the second quarter valued at about $207,000. Finally, Tema ETFs LLC increased its position in Automatic Data Processing by 9.3% in the second quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider’s stock worth $1,531,000 after buying an additional 580 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: ADP reported fiscal fourth-quarter adjusted earnings of $2.64 per share, above the $2.59 consensus estimate, while revenue of $5.47 billion also exceeded expectations. Revenue increased 6.8% year over year, supported by broad-based growth, higher client-funds income and margin gains. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management issued fiscal 2027 revenue guidance of $23.0 billion to $23.3 billion and EPS guidance of $12.12 to $12.34, broadly in line with Wall Street expectations. The outlook indicates continued growth across employer services and human-resources outsourcing. ADP Targets More Gains Ahead After Quarterly Growth
• Positive Sentiment: Analysts raised their price targets following the results: Guggenheim moved to $300 and upgraded ADP to “buy,” while BMO Capital Markets raised its target to $305. Stifel Nicolaus and Wells Fargo also lifted their targets to $285 and $283, respectively. Analyst Price-Target Updates
• Neutral Sentiment: Analyst ratings remain mixed. Guggenheim is bullish, but Stifel maintained “hold,” Wells Fargo kept “equal weight” and BMO retained “market perform,” suggesting some firms view the recent earnings-driven valuation improvement as largely reflected in the stock.
• Negative Sentiment: ADP’s strong results have already helped close what some analysts described as a valuation gap, potentially limiting near-term upside and encouraging investors to lock in gains after the earnings rally. ADP: Post-Earnings Rally Closed the Valuation Gap
• Negative Sentiment: Broader risk-off trading, including a sharp oil-price surge, U.S.-Iran tensions and pressure on the Nasdaq 100 ahead of the Federal Reserve’s decision, is adding to selling pressure on ADP and other large-cap stocks. Oil Spikes and Nasdaq 100 Sinks Before Fed Decision

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.