TD Cowen Forecasts Strong Price Appreciation for Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing (NASDAQ:ADP) had its price target upped by TD Cowen from $208.00 to $216.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a “hold” rating on the business services provider’s stock. TD Cowen’s price target indicates a potential upside of 0.84% from the stock’s previous close.

A number of other brokerages also recently weighed in on ADP. Stifel Nicolaus decreased their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday, February 9th. Citigroup cut their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. BMO Capital Markets reduced their price target on Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a report on Tuesday, April 7th. Morgan Stanley lowered their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Finally, Wells Fargo & Company dropped their price objective on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus price target of $254.40.

Automatic Data Processing Stock Up 1.1%

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

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

Automatic Data Processing declared that its board has authorized a stock 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the 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 completion of the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,809 shares of company stock worth $410,410 in the last 90 days. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new stake in Automatic Data Processing in the 4th quarter valued at about $26,000. TruNorth Capital Management LLC acquired a new stake in Automatic Data Processing in the 3rd quarter valued at about $28,000. Bard Associates Inc. acquired a new stake in Automatic Data Processing in the 4th quarter valued at about $28,000. Finally, Cloud Capital Management LLC acquired a new stake in Automatic Data Processing in the 3rd quarter valued at about $29,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing News Summary

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

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.