Automatic Data Processing (NASDAQ:ADP) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Automatic Data Processing (NASDAQ:ADP) had its target price hoisted by equities research analysts at Wells Fargo & Company from $248.00 to $283.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an “equal weight” rating on the business services provider’s stock. Wells Fargo & Company‘s price objective indicates a potential upside of 9.62% from the stock’s current price.

ADP has been the topic of a number of other research reports. Jefferies Financial Group cut their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Mizuho decreased their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Stifel Nicolaus upped their price target on Automatic Data Processing from $240.00 to $260.00 and gave the company a “hold” rating in a research report on Wednesday, July 8th. 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. Finally, Weiss Ratings raised shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $265.71.

Automatic Data Processing Stock Down 5.6%

ADP stock traded down $15.20 during midday trading on Thursday, hitting $258.17. 521,406 shares of the company’s stock were exchanged, compared to its average volume of 3,139,845. The firm has a 50 day moving average price of $234.18 and a 200-day moving average price of $224.32. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $315.26. The stock has a market capitalization of $103.20 billion, a price-to-earnings ratio of 24.04 and a beta of 0.83. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 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 6.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, analysts anticipate that Automatic Data Processing will post 11.08 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ADP. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the third quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Automatic Data Processing in the 4th quarter worth approximately $26,000. Bard Associates Inc. bought a new position in shares of Automatic Data Processing in the fourth quarter valued at approximately $28,000. Whipplewood Advisors LLC increased its stake in shares of Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after acquiring an additional 137 shares during the period. Finally, Prosperity Bancshares Inc bought a new stake in Automatic Data Processing during the fourth quarter worth approximately $33,000. 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: 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.