Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $240.00 by Analysts at Stifel Nicolaus

Automatic Data Processing (NASDAQ:ADP) had its price objective reduced by Stifel Nicolaus from $270.00 to $240.00 in a research note released on Thursday,MarketScreener reports.

Other equities analysts have also issued reports about the company. JPMorgan Chase & Co. dropped their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Citigroup lowered their price target on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research note on Thursday. UBS Group boosted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a “neutral” rating in a research note on Thursday. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research note on Friday, March 27th. Finally, TD Cowen upped their price objective on Automatic Data Processing from $208.00 to $216.00 and gave the stock a “hold” rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $254.40.

Automatic Data Processing Stock Down 0.6%

ADP traded down $1.38 during trading on Thursday, reaching $210.57. 463,293 shares of the stock traded hands, compared to its average volume of 3,419,975. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The stock’s 50-day simple moving average is $206.67 and its two-hundred day simple moving average is $238.64. The stock has a market cap of $84.78 billion, a price-to-earnings ratio of 19.62 and a beta of 0.85. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping analysts’ consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the previous year, the company posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts expect that Automatic Data Processing will post 11.06 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio is 65.38%.

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

Insider Buying and Selling

In related news, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction 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 sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% 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

Several hedge funds have recently bought and sold shares of ADP. Brighton Jones LLC lifted its stake in Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after purchasing an additional 4,808 shares during the last quarter. Bison Wealth LLC raised its position in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after buying an additional 681 shares in the last quarter. Schnieders Capital Management LLC. raised its position in shares of Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after buying an additional 225 shares in the last quarter. Osterweis Capital Management Inc. acquired a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $108,000. Finally, Diversify Advisory Services LLC increased its stake in Automatic Data Processing by 17.5% in the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider’s stock valued at $1,641,000 after acquiring an additional 815 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

More Automatic Data Processing News

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

• Positive Sentiment: Q3 beat and guidance lift — ADP reported EPS of $3.37 and raised FY2026 adjusted EPS growth to 10%–11% and revenue growth to 6%–7%, supporting revenue resiliency and higher forward earnings expectations. ADP forecasts FY 2026 adjusted EPS growth of 10%-11% as it raises revenue
• Positive Sentiment: Company commentary highlighted strong payroll services demand and AI-related gains on the earnings call, reinforcing the revenue/operating leverage story. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: UBS raised its price target to $218 with a “neutral” rating — a modest upside relative to current levels that signals limited near-term analyst enthusiasm. Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $218.00 at UBS Group
• Neutral Sentiment: TD Cowen nudged its target to $216 (hold), another small upward tweak that keeps expectations broadly in the “flat to modest upside” camp. TD Cowen Issues Positive Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price
• Neutral Sentiment: Cantor Fitzgerald cut its target to $244 from $306 but retained an overweight rating — still implying upside, though the reset tempering upside expectations from prior levels. Cantor Fitzgerald adjusts price target on Automatic Data Processing
• Negative Sentiment: Citigroup lowered its target meaningfully (from $265 to $230) and kept a neutral stance — a direct headwind that likely weighs on sentiment despite the beat. Automatic Data Processing (NASDAQ:ADP) Given New $230.00 Price Target at Citigroup
• Negative Sentiment: Mixed analyst moves and valuation debate — while some targets were raised, several were trimmed and commentators are re-assessing valuation after the recent rebound, creating short-term uncertainty. Assessing Automatic Data Processing’s Valuation After Recent Share Price Rebound
• Negative Sentiment: Technical/market context: ADP’s 50-day SMA sits below the 200-day SMA and current price sits well under its one-year high — technical resistance and mixed macro tone may pressure the stock despite fundamentals. (Company filings and market data)

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.