Automatic Data Processing (NASDAQ:ADP – Free Report) had its price target boosted by Stifel Nicolaus from $260.00 to $285.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a hold rating on the business services provider’s stock.
Several other equities research analysts have also commented on ADP. BMO Capital Markets boosted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a report on Wednesday. Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 28th. Cantor Fitzgerald raised their target price on shares of Automatic Data Processing from $244.00 to $295.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Guggenheim lifted their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Argus reduced their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $272.43.
Automatic Data Processing Stock Up 1.0%
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. During the same period last year, the company earned $2.26 EPS. Automatic Data Processing’s quarterly revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts predict that Automatic Data Processing will post 12.28 EPS for the current year.
Insider Buying and Selling at Automatic Data Processing
In related news, VP David Kwon sold 2,414 shares of the firm’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president directly owned 9,660 shares of the company’s stock, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Automatic Data Processing
A number of large investors have recently made changes to their positions in the stock. Northcape Wealth Management LLC increased its stake in shares of 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 worth $1,692,000 after acquiring an additional 39 shares during the last quarter. Rathbones Group PLC grew its holdings in shares of Automatic Data Processing by 1.1% in the fourth 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 during the period. Zullo Investment Group Inc. increased its position in Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock worth $485,000 after purchasing an additional 42 shares during the last quarter. Trilogy Capital Inc. raised its stake in Automatic Data Processing by 5.3% during the fourth quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider’s stock worth $219,000 after purchasing an additional 43 shares during the period. Finally, Blossom Wealth Management boosted its holdings in 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 purchasing an additional 44 shares during the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.
Automatic Data Processing News Summary
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.
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