Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $286.00

Automatic Data Processing (NASDAQ:ADP) had its target price lifted by Morgan Stanley from $240.00 to $286.00 in a research note published on Thursday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the business services provider’s stock.

ADP has been the subject of a number of other research reports. Wells Fargo & Company increased their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research report on Thursday. Citigroup cut their target price on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th. Jefferies Financial Group decreased their price target on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Stifel Nicolaus raised their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research report on Thursday. Finally, UBS Group lifted their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $272.43.

Automatic Data Processing Trading Up 1.0%

NASDAQ ADP opened at $266.46 on Thursday. The firm’s 50-day moving average is $235.88 and its two-hundred day moving average is $224.60. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $315.26. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.04. The stock has a market capitalization of $106.51 billion, a P/E ratio of 24.36 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, sell-side analysts anticipate that Automatic Data Processing will post 12.28 earnings per share for the current year.

Insiders Place Their Bets

In related news, VP David Kwon sold 2,414 shares of the company’s stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the sale, the vice president directly owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors have recently modified their holdings of the business. Northcape Wealth Management LLC boosted its holdings in Automatic Data Processing by 0.6% in the fourth quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider’s stock valued at $1,692,000 after purchasing an additional 39 shares during the period. Rathbones Group PLC raised its position in Automatic Data Processing by 1.1% in the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider’s stock valued at $1,036,000 after purchasing an additional 42 shares in the last quarter. Zullo Investment Group Inc. raised its position in Automatic Data Processing by 2.3% in the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock valued at $485,000 after purchasing an additional 42 shares in the last quarter. Trilogy Capital Inc. boosted its stake in shares of Automatic Data Processing by 5.3% in the 4th quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider’s stock valued at $219,000 after buying an additional 43 shares during the period. Finally, Blossom Wealth Management boosted its stake in shares of Automatic Data Processing by 3.1% in the 4th quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider’s stock valued at $378,000 after buying an additional 44 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

More Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

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.