Stifel Nicolaus Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $280.00

Automatic Data Processing (NASDAQ:ADP) had its price target trimmed by Stifel Nicolaus from $290.00 to $280.00 in a research report report published on Thursday,Benzinga reports. The firm currently has a hold rating on the business services provider’s stock.

Other analysts have also issued reports about the company. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research 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 initiated coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective on the stock. Finally, Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus target price of $295.38.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $246.82 on Thursday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.05. The firm has a 50 day simple moving average of $258.36 and a 200 day simple moving average of $277.79. Automatic Data Processing has a fifty-two week low of $243.68 and a fifty-two week high of $329.93. The firm has a market cap of $99.83 billion, a P/E ratio of 23.73 and a beta of 0.86.

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

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

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

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP David Kwon sold 900 shares of the business’s stock in a transaction dated Tuesday, January 6th. The shares were 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 directly owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. The trade was a 6.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 2,249 shares of company stock worth $589,852. Insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

A number of institutional investors have recently modified their holdings of the company. Sigma Planning Corp increased its holdings in Automatic Data Processing by 1.8% during the fourth quarter. Sigma Planning Corp now owns 4,717 shares of the business services provider’s stock worth $1,213,000 after buying an additional 83 shares during the last quarter. North Star Investment Management Corp. increased its position in Automatic Data Processing by 2.7% during the 4th quarter. North Star Investment Management Corp. now owns 2,041 shares of the business services provider’s stock worth $525,000 after buying an additional 54 shares during the period. Activest Wealth Management grew its stake in shares of Automatic Data Processing by 275.6% in the fourth quarter. Activest Wealth Management now owns 169 shares of the business services provider’s stock valued at $43,000 after acquiring an additional 124 shares in the last quarter. Heritage Investment Group Inc. increased its holdings in shares of Automatic Data Processing by 13.1% during the fourth quarter. Heritage Investment Group Inc. now owns 2,927 shares of the business services provider’s stock worth $753,000 after purchasing an additional 339 shares during the period. Finally, Cardinal Capital Management increased its stake in Automatic Data Processing by 0.5% during the 4th quarter. Cardinal Capital Management now owns 43,262 shares of the business services provider’s stock worth $11,201,000 after acquiring an additional 194 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Q4 / Q2 results and guidance — ADP beat revenue and EPS estimates, showed broad-based growth and margin stability, and set FY26 EPS guidance above street projections; management reiterated an upbeat outlook and a buyback. These execution and capital-allocation signals support the stock’s upward reaction. ADP Q4 Deep Dive
• Positive Sentiment: Earnings call takeaways — summaries and highlights (management tone, buyback, and stronger Employer Services performance) reinforced the beat-and-raise narrative that underpins near-term fundamentals. ADP Earnings Call Highlights
• Neutral Sentiment: New coverage and analyst reports — Cantor Fitzgerald initiated coverage and independent analyst notes (Argus) provide fresh research flow that can increase trading interest but are mixed in directional impact. Coverage Initiated at Cantor Fitzgerald Analyst Report: Automatic Data Processing Inc.
• Negative Sentiment: Multiple price?target cuts and downgrades — Morgan Stanley, Citigroup, JPMorgan, Wells Fargo and Stifel trimmed targets and moved to neutral/underweight/hold stances, signaling reduced analyst conviction and pressuring investor sentiment despite upside still implied by some revised targets. Benzinga coverage of analyst actions
• Negative Sentiment: 52?week low headline — reports that ADP hit a 52?week low attract attention and can trigger short-term selling or defensive positioning by momentum and quant funds. Adp stock hits 52-week low

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.