Automatic Data Processing (NASDAQ:ADP) Stock Price Expected to Rise, UBS Group Analyst Says

Automatic Data Processing (NASDAQ:ADP) had its target price raised by investment analysts at UBS Group from $210.00 to $218.00 in a report issued on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the business services provider’s stock. UBS Group’s price objective indicates a potential upside of 1.77% from the stock’s current price.

Several other equities analysts have also recently commented on the stock. Citigroup reduced their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research report on Thursday. Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research report on Friday, March 27th. Morgan Stanley reduced their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Guggenheim started coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Finally, TD Cowen increased their price target on shares of Automatic Data Processing from $208.00 to $216.00 and gave the stock a “hold” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $254.40.

Automatic Data Processing Stock Performance

Automatic Data Processing stock opened at $214.21 on Thursday. The stock has a market cap of $86.25 billion, a P/E ratio of 19.98 and a beta of 0.83. The company has a current ratio of 1.04, a quick ratio of 1.03 and a debt-to-equity ratio of 0.63. The stock has a 50 day moving average of $206.67 and a 200-day moving average of $238.64. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating the consensus estimate of $3.30 by $0.07. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business’s revenue was up 7.0% on a year-over-year basis. During the same period in the prior year, the business posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, analysts expect that Automatic Data Processing will post 11.07 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the firm’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company’s stock, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,809 shares of company stock valued at $410,410 over the last quarter. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently bought and sold shares of ADP. Imprint Wealth LLC bought a new stake in Automatic Data Processing in the third quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing in the fourth quarter valued at $26,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing in the third quarter valued at $28,000. Bard Associates Inc. bought a new stake in Automatic Data Processing in the fourth quarter valued at $28,000. Finally, Cloud Capital Management LLC bought a new stake in Automatic Data Processing in the third quarter valued at $29,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing News Summary

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

• Positive Sentiment: ADP beat Q3 estimates and raised guidance — the company reported EPS above expectations and lifted its FY‑2026 adjusted EPS growth to 10%–11% while raising revenue growth to 6%–7%, supporting stronger near‑term fundamentals and subscription demand. ADP forecasts FY 2026 adjusted EPS growth
• Positive Sentiment: UBS raised its price target to $218 (neutral rating) — a modest upgrade that signals some analysts see limited near‑term downside after the beat and guidance lift. ADP Price Target Raised to $218 at UBS Group
• Positive Sentiment: TD Cowen issued a positive forecast — another analyst backing a constructive view on ADP’s outlook, which can support buying interest after the earnings/guidance update. TD Cowen Issues Positive Forecast
• Positive Sentiment: Mizuho cut its target but left a high $305 target (still large upside) — shows some firms trimmed overly ambitious targets while maintaining a bullish long‑run view. Mizuho adjusts ADP PT to $305
• Neutral Sentiment: Citigroup cut its target to $230 and kept a neutral rating — less bullish than before but still implies upside; this reflects mixed analyst sentiment after the quarter. ADP Given New $230.00 Price Target at Citigroup
• Neutral Sentiment: Stifel lowered its PT to $240 (still above the current price) — a downgrade in target level but not a sell signal; suggests tempered upside expectations. Stifel Nicolaus adjusts ADP PT to $240
• Neutral Sentiment: Robert W. Baird trimmed its target to $270 — still a material upside, but the cut contributes to mixed analyst signals. Baird adjusts ADP PT to $270
• Neutral Sentiment: Cantor Fitzgerald cut its PT to $244 but kept an overweight rating — indicates confidence in longer‑term upside despite trimming near‑term valuation. Cantor Fitzgerald adjusts ADP PT to $244
• Negative Sentiment: Jefferies cut its price target sharply to $190 — the only firm in this batch with a below‑current‑price target, which could weigh on risk‑sentiment or prompt cautious positioning. Jefferies adjusts ADP PT to $190

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.