Morgan Stanley Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price objective decreased by equities research analysts at Morgan Stanley from $311.00 to $274.00 in a report issued on Tuesday,MarketScreener reports. The firm presently has an “equal weight” rating on the business services provider’s stock. Morgan Stanley’s target price would suggest a potential upside of 37.46% from the company’s previous close.

A number of other analysts have also commented on ADP. Cantor Fitzgerald dropped their price target on Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a report on Tuesday, April 21st. Wells Fargo & Company dropped their price target on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday, February 9th. UBS Group dropped their price target on Automatic Data Processing from $220.00 to $210.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. 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 report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $273.85.

Automatic Data Processing Stock Up 1.1%

ADP stock traded up $2.10 during trading on Tuesday, reaching $199.33. The stock had a trading volume of 2,627,953 shares, compared to its average volume of 3,418,466. Automatic Data Processing has a one year low of $188.16 and a one year high of $329.93. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The company’s 50 day moving average is $207.07 and its two-hundred day moving average is $239.60. The company has a market capitalization of $80.26 billion, a price-to-earnings ratio of 19.15 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm posted $2.35 EPS. The firm’s quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts forecast that Automatic Data Processing will post 10.96 EPS for the current year.

Automatic Data Processing announced that its board has approved a share repurchase program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The transaction 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 Automatic Data Processing stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,809 shares of company stock valued at $410,410. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently modified their holdings of the stock. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $25,000. TruNorth Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $28,000. Cloud Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $29,000. Cornerstone Financial Management LLC bought a new position in Automatic Data Processing in the 4th quarter worth approximately $26,000. Finally, Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $32,000. Institutional investors own 80.03% of the company’s stock.

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.