Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $305.00

Automatic Data Processing (NASDAQ:ADP) had its target price boosted by BMO Capital Markets from $248.00 to $305.00 in a report issued on Wednesday morning, Marketbeat reports. They currently have a market perform rating on the business services provider’s stock.

Other equities analysts have also recently issued reports about the company. Mizuho lowered their price target on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Argus reduced 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 report on Tuesday, May 5th. Jefferies Financial Group decreased their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. TD Cowen increased 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 note on Monday, July 6th. Finally, Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $272.43.

Automatic Data Processing Trading Up 1.0%

ADP opened at $266.46 on Wednesday. The stock has a market capitalization of $106.51 billion, a PE ratio of 24.36 and a beta of 0.83. Automatic Data Processing has a one year low of $188.16 and a one year high of $315.26. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05. The business’s 50 day moving average price is $235.88 and its 200 day moving average price is $224.60.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. During the same quarter last year, the firm earned $2.26 earnings per share. The firm’s quarterly revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, equities research analysts expect that Automatic Data Processing will post 12.24 EPS for the current year.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president directly owned 9,660 shares of the company’s stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Northcape Wealth Management LLC raised 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 valued at $1,692,000 after acquiring an additional 39 shares in the last quarter. Rathbones Group PLC grew its holdings in shares of Automatic Data Processing by 1.1% during the fourth quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider’s stock worth $1,036,000 after purchasing an additional 42 shares in the last quarter. Zullo Investment Group Inc. grew its holdings in shares of Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock worth $485,000 after purchasing an additional 42 shares in the last quarter. Trilogy Capital Inc. increased its position in shares of Automatic Data Processing by 5.3% in the fourth quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider’s stock worth $219,000 after purchasing an additional 43 shares during the last quarter. Finally, Blossom Wealth Management increased its position in shares of Automatic Data Processing by 3.1% in the fourth quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider’s stock worth $378,000 after purchasing an additional 44 shares during the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

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.