Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Average Recommendation of “Hold” from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been assigned an average rating of “Hold” from the fourteen ratings firms that are presently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $295.3846.

ADP has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Wells Fargo & Company decreased their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research note on Thursday. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a report on Thursday. Finally, Citigroup decreased their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 900 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the transaction, the vice president owned 11,993 shares of the company’s stock, valued at $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This represents a 5.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 2,249 shares of company stock valued at $589,852 in the last ninety days. 0.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

Several large investors have recently made changes to their positions in ADP. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the 3rd quarter valued at approximately $25,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $26,000. Mid American Wealth Advisory Group Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at approximately $26,000. Howard Hughes Medical Institute purchased a new position in shares of Automatic Data Processing in the second quarter valued at $27,000. Finally, Solstein Capital LLC bought a new stake in Automatic Data Processing in the second quarter worth $28,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing News Summary

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

• Positive Sentiment: Q2 results beat: ADP reported $2.62 EPS and $5.36B revenue (rev +6.2% y/y), topping estimates and lifting annual revenue outlook — proof of steady demand for payroll/HR services. Reuters: ADP lifts annual revenue forecast
• Positive Sentiment: Large buyback support: Management authorized a roughly $6 billion share repurchase program, which reduces float and can be a near?term earnings/shares support catalyst. MarketBeat: 3 Large-Cap Stocks Announce Big Buyback Boosts
• Positive Sentiment: Product/innovation momentum: ADP launched ADP Assist AI agents aimed at automating HR and payroll workflows — a strategic investment that could improve product stickiness and long?term margins. PR Newswire: ADP launches AI agents
• Neutral Sentiment: FY26 guidance mixed: ADP provided FY26 EPS and revenue ranges that overlap but do not materially beat consensus — guidance gives a longer?term view but left some analysts unconvinced. (See Q2 earnings coverage for details.) Zacks: ADP Q2 earnings top estimates
• Neutral Sentiment: New coverage: Cantor Fitzgerald initiated coverage (bringing fresh analyst attention but not yet a consensus driver). American Banking News: Coverage Initiated
• Neutral Sentiment: Reported short?interest data appears noisy/unclear in recent filings and isn’t a clear driver of price action at this point.
• Negative Sentiment: Analyst downgrades and price?target cuts: Several firms (Morgan Stanley, Citi, JPMorgan, Wells Fargo, Stifel) trimmed targets and moved to neutral/underweight ratings, signaling lowered near?term sentiment and pressuring the stock. Benzinga: Analyst actions summary
• Negative Sentiment: Technical/market pressure: ADP hit a 52?week low, reinforcing bearish momentum and likely contributing to today’s selling. Investing.com: ADP hits 52-week low

Automatic Data Processing Stock Performance

ADP opened at $245.97 on Friday. The company’s 50 day moving average is $258.49 and its 200 day moving average is $278.33. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The company has a market cap of $99.48 billion, a price-to-earnings ratio of 23.65 and a beta of 0.86. Automatic Data Processing has a 12-month low of $244.44 and a 12-month high of $329.93.

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

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Automatic Data Processing declared that its board has authorized a share repurchase plan 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 buy up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

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.