Automatic Data Processing (NASDAQ:ADP) Price Target Lowered to $262.00 at Wells Fargo & Company

Automatic Data Processing (NASDAQ:ADP) had its price objective decreased by investment analysts at Wells Fargo & Company from $272.00 to $262.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s price target suggests a potential upside of 5.82% from the stock’s previous close.

Several other equities analysts have also issued reports on the company. Citigroup started coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price target on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday. They set an “overweight” rating and a $306.00 target price on the stock. Stifel Nicolaus decreased their price target on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a research note on Thursday. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of “Hold” and an average target price of $302.69.

Automatic Data Processing Trading Down 1.2%

ADP stock traded down $3.10 during midday trading on Thursday, hitting $247.59. The stock had a trading volume of 887,336 shares, compared to its average volume of 2,145,235. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The firm has a market cap of $100.14 billion, a P/E ratio of 24.44 and a beta of 0.86. The business has a fifty day moving average price of $258.55 and a two-hundred day moving average price of $278.55. Automatic Data Processing has a 1-year low of $247.18 and a 1-year high of $329.93.

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 for the quarter, topping the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period last year, the company posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, sell-side analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

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

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This represents a 5.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP David Kwon sold 900 shares of the stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the sale, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,249 shares of company stock worth $589,852 in the last 90 days. Corporate insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

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

Automatic Data Processing News Roundup

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

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue $5.36B (+6.2% Y/Y); management raised FY2026 guidance. This fundamental beat and guidance lift are the primary positive catalysts. ADP boosts guidance after Q2 earnings, revenue beat on strong Employer Services performance
• Positive Sentiment: Management reiterated an upbeat outlook on the earnings call and emphasized a sizable buyback program (authorized $6B in January) — supports EPS accretion and signals management confidence in the share base. ADP Earnings Call Highlights Upbeat Outlook and Buyback
• Positive Sentiment: Product/AI innovation: ADP launched ADP Assist AI agents to automate HR and payroll tasks — strengthens product differentiation and addressable market for subscription services. ADP Accelerates AI Leadership with Launch of New AI Agents Designed to Solve Workforce Challenges
• Positive Sentiment: Sell-side interest: Cantor Fitzgerald initiated coverage with an overweight call, which can help buy-side attention and liquidity. Cantor Fitzgerald initiates coverage of Automatic Data Processing (ADP) with overweight recommendation
• Neutral Sentiment: Earnings materials and call transcript available for deeper read — management provided slides, a transcript and detailed metrics that investors can model into FY2026 EPS range of ~10.09–11.01. Automatic Data Processing Inc (ADP) Q2 2026 Earnings Call Highlights
• Negative Sentiment: Hiring weakness / valuation concerns: commentary that client headcount growth is soft and a recent analysis flagged that ADP still looks pricey given macro headwinds — these factors likely explain selling pressure despite the beat. Automatic Data Processing: Still Expensive Given Macro Headwinds

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.