Automatic Data Processing (NASDAQ:ADP) Upgraded by Guggenheim to “Strong-Buy” Rating

Guggenheim upgraded shares of Automatic Data Processing (NASDAQ:ADP) to a strong-buy rating in a report released on Wednesday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on ADP. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Finally, Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Trading Up 1.1%

NASDAQ ADP opened at $210.66 on Wednesday. The firm has a market capitalization of $84.82 billion, a PE ratio of 20.26 and a beta of 0.86. The business’s 50-day moving average price is $230.43 and its two-hundred day moving average price is $257.62. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12 month low of $203.26 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts expect that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has approved a share repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP David Foskett sold 266 shares of the company’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 value of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,058 shares of company stock worth $1,000,263 in the last three months. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently made changes to their positions in ADP. Imprint Wealth LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $25,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the 2nd quarter valued at $27,000. TruNorth Capital Management LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at $28,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the 3rd quarter worth $29,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing in the 4th quarter worth $26,000. 80.03% of the stock is owned by institutional investors.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Guggenheim initiated coverage of ADP with a Buy/Strong‑Buy and a $270 price target (about a 28% upside), citing that fears around AI are premature and highlighting ADP’s income characteristics. Article Title
• Positive Sentiment: Coverage noted in industry writeups that include ADP among dividend picks and steady‑income names; reinforces the stock’s appeal to income investors. Article Title
• Positive Sentiment: Zacks reported an upgrade to “strong‑buy,” adding to the bullish analyst momentum and likely contributing to buying pressure. Article Title
• Neutral Sentiment: Several articles relay the new coverage across media (Benzinga/MSN/InsiderMonkey), increasing visibility; media pickup can amplify short‑term flows but doesn’t change fundamentals on its own. Article Title
• Neutral Sentiment: Reported short‑interest figures for mid‑March appear to contain erroneous/zero values (NaN/0), so there’s no clear signal from short‑interest data in these entries. (Data reliability issue.)
• Negative Sentiment: MarketWatch noted ADP underperformed some competitors on Thursday despite daily gains, a reminder that relative performance versus peers could cap upside if the sector rallies without ADP participation. Article Title

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.