Citigroup Lowers Automatic Data Processing (NASDAQ:ADP) Price Target to $230.00

Automatic Data Processing (NASDAQ:ADP) had its price target reduced by Citigroup from $265.00 to $230.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the business services provider’s stock. Citigroup’s price target suggests a potential upside of 7.37% from the stock’s current price.

Other equities analysts have also recently issued research reports about the company. Stifel Nicolaus cut their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. BMO Capital Markets dropped their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research note on Tuesday, April 7th. Cantor Fitzgerald dropped their target price on Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a report on Wednesday. Guggenheim began coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 target price for the company. Finally, JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $254.40.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $214.21 on Thursday. The company has a current ratio of 1.04, a quick ratio of 1.03 and a debt-to-equity ratio of 0.63. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $329.93. The stock has a 50-day moving average price of $206.67 and a 200 day moving average price of $238.64. The stock has a market capitalization of $86.25 billion, a P/E ratio of 19.98 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.85 billion. During the same quarter last year, the business posted $3.06 earnings per share. The firm’s revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities research analysts forecast that Automatic Data Processing will post 11.07 EPS for the current fiscal year.

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

Insider Buying and Selling

In related news, VP Brian L. Michaud sold 1,000 shares of the business’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 completion of the transaction, the vice president owned 15,310 shares in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, the vice president owned 8,912 shares of the company’s stock, valued at approximately $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 ninety days, insiders sold 1,809 shares of company stock valued at $410,410. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently bought and sold shares of ADP. CGC Financial Services LLC boosted its position in Automatic Data Processing by 13.7% in the 3rd quarter. CGC Financial Services LLC now owns 323 shares of the business services provider’s stock valued at $95,000 after buying an additional 39 shares during the period. Coston McIsaac & Partners boosted its position in Automatic Data Processing by 13.2% in the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider’s stock valued at $98,000 after buying an additional 39 shares during the period. Northcape Wealth Management LLC boosted its position in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider’s stock valued at $1,692,000 after buying an additional 39 shares during the period. Private Advisory Group LLC boosted its position in Automatic Data Processing by 4.8% in the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider’s stock valued at $254,000 after buying an additional 40 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC boosted its position in Automatic Data Processing by 0.3% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider’s stock valued at $4,455,000 after buying an additional 41 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: ADP beat Q3 estimates and raised guidance — the company reported EPS above expectations and lifted its FY?2026 adjusted EPS growth to 10%–11% while raising revenue growth to 6%–7%, supporting stronger near?term fundamentals and subscription demand. ADP forecasts FY 2026 adjusted EPS growth
• Positive Sentiment: UBS raised its price target to $218 (neutral rating) — a modest upgrade that signals some analysts see limited near?term downside after the beat and guidance lift. ADP Price Target Raised to $218 at UBS Group
• Positive Sentiment: TD Cowen issued a positive forecast — another analyst backing a constructive view on ADP’s outlook, which can support buying interest after the earnings/guidance update. TD Cowen Issues Positive Forecast
• Positive Sentiment: Mizuho cut its target but left a high $305 target (still large upside) — shows some firms trimmed overly ambitious targets while maintaining a bullish long?run view. Mizuho adjusts ADP PT to $305
• Neutral Sentiment: Citigroup cut its target to $230 and kept a neutral rating — less bullish than before but still implies upside; this reflects mixed analyst sentiment after the quarter. ADP Given New $230.00 Price Target at Citigroup
• Neutral Sentiment: Stifel lowered its PT to $240 (still above the current price) — a downgrade in target level but not a sell signal; suggests tempered upside expectations. Stifel Nicolaus adjusts ADP PT to $240
• Neutral Sentiment: Robert W. Baird trimmed its target to $270 — still a material upside, but the cut contributes to mixed analyst signals. Baird adjusts ADP PT to $270
• Neutral Sentiment: Cantor Fitzgerald cut its PT to $244 but kept an overweight rating — indicates confidence in longer?term upside despite trimming near?term valuation. Cantor Fitzgerald adjusts ADP PT to $244
• Negative Sentiment: Jefferies cut its price target sharply to $190 — the only firm in this batch with a below?current?price target, which could weigh on risk?sentiment or prompt cautious positioning. Jefferies adjusts ADP PT to $190

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.