Guggenheim Forecasts Strong Price Appreciation for Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing (NASDAQ:ADP) had its target price boosted by equities researchers at Guggenheim from $270.00 to $300.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the business services provider’s stock. Guggenheim’s target price suggests a potential upside of 13.47% from the stock’s previous close.

A number of other research analysts also recently commented on the company. Mizuho reduced their target price on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Cantor Fitzgerald lifted their price objective on shares of Automatic Data Processing from $244.00 to $295.00 and gave the stock an “overweight” rating in a report on Wednesday, July 22nd. UBS Group boosted their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Citigroup dropped their target price on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a report on Thursday, April 30th. Finally, Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $263.21.

Automatic Data Processing Trading Down 3.3%

ADP opened at $264.38 on Thursday. The firm has a market capitalization of $105.68 billion, a P/E ratio of 24.62 and a beta of 0.83. The firm’s 50 day moving average is $234.18 and its 200-day moving average is $224.32. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $315.26. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

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

Institutional Trading of Automatic Data Processing

Hedge funds have recently bought and sold shares of the company. Brighton Jones LLC grew its position in Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after purchasing an additional 4,808 shares during the last quarter. Bison Wealth LLC boosted its position in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after buying an additional 681 shares during the period. Schnieders Capital Management LLC. boosted its position in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock worth $388,000 after buying an additional 225 shares during the period. Osterweis Capital Management Inc. bought a new position in Automatic Data Processing in the 2nd quarter worth approximately $108,000. Finally, Diversify Advisory Services LLC grew its holdings in Automatic Data Processing by 17.5% in the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider’s stock worth $1,641,000 after buying an additional 815 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Key Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue reached $5.47 billion, ahead of the $5.44 billion forecast. Revenue increased 6.8% year over year, and EPS rose from $2.26 in the prior-year quarter. Broad-based growth, productivity gains and higher client-funds income supported margins and profits. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management expects growth to continue in fiscal 2027. ADP forecast adjusted EPS of $12.12–$12.34 and revenue of $23.0–$23.3 billion, broadly in line with Wall Street expectations. The outlook points to continued expansion in employer services and human-resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Some analysts view the shares favorably after the earnings rally. A Seeking Alpha analysis described ADP as still attractive despite the post-results valuation re-rating, while BMO raised its price target to $305 from $248, maintaining a “market perform” rating. Automatic Data Processing: Post-Earnings Rally Closed The Valuation Gap, Still A Buy
• Neutral Sentiment: Valuation has become a key debate. After a roughly 44% five-year gain, ADP trades near $273 and at approximately 25.5 times earnings. Commentary suggests the stock now looks reasonable rather than clearly discounted, making future gains more dependent on execution and guidance upgrades. Automatic Data Processing Stock Looks Reasonable After Its 44% Five Year Run
• Negative Sentiment: Macro and trading signals remain potential headwinds. A broader market sell-off tied to surging oil prices, U.S.-Iran tensions and interest-rate uncertainty could pressure defensive growth stocks. Separately, recent disclosed ADP insider activity showed sales and no purchases, a modest negative signal for sentiment.

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.