Automatic Data Processing’s (ADP) Sector Perform Rating Reaffirmed at Royal Bank Of Canada

Posted by Francis Steltz on Oct 29th, 2026

Automatic Data Processing (NASDAQ:ADP – Get Free Report)‘s stock had its “sector perform” rating reissued by stock analysts at Royal Bank Of Canada in a report issued on Thursday, Benzinga reports. They currently have a $290.00 target price on the business services provider’s stock. Royal Bank Of Canada‘s target price suggests a potential upside of 1.28% from the company’s previous close.

A number of other equities research analysts have also issued reports on the stock. Cantor Fitzgerald lifted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Morgan Stanley upped their price target on shares of Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research note on Thursday. Citigroup increased their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Guggenheim reissued a “buy” rating and set a $340.00 price objective on shares of Automatic Data Processing in a research report on Thursday. Finally, Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $282.73.

Read Our Latest Stock Report on Automatic Data Processing

Automatic Data Processing Stock Up 0.3%

Shares of NASDAQ ADP traded up $0.95 during mid-day trading on Thursday, reaching $286.32. The company had a trading volume of 896,239 shares, compared to its average volume of 2,837,134. The stock has a fifty day moving average of $276.79 and a two-hundred day moving average of $240.57. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market capitalization of $113.46 billion, a price-to-earnings ratio of 26.17, a PEG ratio of 2.75 and a beta of 0.83. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $309.40.

Automatic Data Processing (NASDAQ:ADP – Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm’s revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.49 earnings per share. As a group, equities research analysts expect that Automatic Data Processing will post 12.27 EPS for the current year.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Joseph Desilva sold 631 shares of Automatic Data Processing stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president owned 18,824 shares of the company’s stock, valued at approximately $5,324,744.88. The trade was a 3.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares of the company’s stock, valued at $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,359 shares of company stock worth $8,809,422 over the last quarter. Company insiders own 0.15% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Automatic Data Processing during the second quarter worth approximately $8,097,229,000. Bank of America Corp DE bought a new position in shares of Automatic Data Processing in the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new position in shares of Automatic Data Processing in the second quarter valued at approximately $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Automatic Data Processing by 3.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock worth $952,112,000 after buying an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Automatic Data Processing in the second quarter worth $725,513,000. 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: Fiscal Q1 earnings beat expectations. ADP reported adjusted EPS of $2.82, up from $2.49 a year earlier and ahead of the $2.77 consensus estimate. Revenue increased 6.1% year over year to $5.49 billion, narrowly exceeding expectations. ADP Reports First Quarter Fiscal 2027 Results
Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now forecasts 10%–12% adjusted EPS growth and expects client-funds interest revenue of approximately $1.59 billion to $1.61 billion. Commentary also highlighted momentum in artificial-intelligence adoption, potentially supporting future growth. ADP boosts FY2027 earnings and revenue growth after Q1 results beat
Positive Sentiment: Guggenheim reaffirmed a Buy rating and raised its price target to $340, implying roughly 19% upside from the referenced share price. ADP also announced an embedded payroll, HR and benefits solution with PNC Bank, expanding distribution to small-business customers. Guggenheim ADP rating PNC Bank and ADP announce embedded payroll solution
Neutral Sentiment: Analyst views remain mixed. Stifel raised its price target from $285 to $305 but retained a Hold rating, suggesting only moderate upside at current levels. ADP trades at a relatively demanding valuation, with a reported P/E ratio above 26.
Negative Sentiment: Jefferies maintained an Underperform rating despite increasing its target from $225 to $250. The target remains below the referenced share price, reinforcing concerns that much of ADP’s earnings growth is already reflected in the stock. Jefferies ADP rating

About Automatic Data Processing

(Get Free Report)

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.