Wells Fargo & Company Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $214.00

Automatic Data Processing (NASDAQ:ADP) had its price objective dropped by investment analysts at Wells Fargo & Company from $262.00 to $214.00 in a research note issued on Friday,Benzinga reports. The firm currently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s target price suggests a potential upside of 4.64% from the company’s current price.

Several other research analysts have also recently weighed in on the stock. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup cut their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Morgan Stanley lowered their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. dropped their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average price target of $284.77.

Automatic Data Processing Trading Up 1.2%

ADP stock opened at $204.51 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a twelve month low of $198.59 and a twelve month high of $329.93. The company has a market cap of $82.34 billion, a P/E ratio of 19.66 and a beta of 0.86. The business has a fifty day moving average of $224.94 and a 200-day moving average of $254.36.

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

Automatic Data Processing announced that its board has initiated a share buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 4,058 shares of company stock worth $1,000,263. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Hedge funds and other institutional investors have recently modified their holdings of the stock. J. Derek Lewis & Associates Inc. bought a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $211,000. Stance Capital LLC grew its stake in shares of Automatic Data Processing by 251.5% in the fourth quarter. Stance Capital LLC now owns 16,093 shares of the business services provider’s stock valued at $4,140,000 after buying an additional 11,515 shares in the last quarter. Cornerstone Planning LLC acquired a new position in Automatic Data Processing during the fourth quarter worth $3,249,000. Osbon Capital Management LLC acquired a new position in Automatic Data Processing during the fourth quarter worth $52,000. Finally, World Investment Advisors raised its position in Automatic Data Processing by 164.0% during the fourth quarter. World Investment Advisors now owns 28,062 shares of the business services provider’s stock worth $7,219,000 after acquiring an additional 17,434 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.