Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $287.00 at Citigroup

Automatic Data Processing (NASDAQ:ADP) had its target price upped by analysts at Citigroup from $230.00 to $287.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has a “neutral” rating on the business services provider’s stock. Citigroup’s target price would suggest a potential upside of 8.89% from the stock’s current price.

A number of other research analysts have also weighed in on the stock. Mizuho dropped their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Morgan Stanley boosted their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a report on Thursday. Robert W. Baird dropped their target price on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. BMO Capital Markets increased their price target on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research report on Wednesday. Finally, Wells Fargo & Company lifted 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 report on Thursday. 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 company. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $272.43.

Automatic Data Processing Trading Down 3.6%

Shares of ADP stock traded down $9.79 during trading hours on Thursday, hitting $263.57. 1,451,667 shares of the company were exchanged, compared to its average volume of 3,148,426. The company has a 50 day simple moving average of $234.18 and a two-hundred day simple moving average of $224.32. The firm has a market cap of $105.36 billion, a P/E ratio of 24.56 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.26.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. The business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing’s revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts anticipate that Automatic Data Processing will post 11.08 EPS for the current year.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. grew its position in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after buying an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. raised its holdings in shares of Automatic Data Processing by 950.1% in the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after acquiring an additional 3,223,855 shares in the last quarter. Norges Bank bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at about $721,738,000. Clearbridge Investments LLC grew its holdings in shares of Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after purchasing an additional 964,405 shares in the last quarter. Finally, Amundi grew its holdings in shares of Automatic Data Processing by 27.7% during the first quarter. Amundi now owns 3,034,002 shares of the business services provider’s stock worth $616,449,000 after purchasing an additional 658,932 shares in the last quarter. 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 reported fiscal fourth-quarter adjusted earnings of $2.64 per share, above the $2.59 consensus estimate, while revenue of $5.47 billion also exceeded expectations. Revenue increased 6.8% year over year, supported by broad-based growth, higher client-funds income and margin gains. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management issued fiscal 2027 revenue guidance of $23.0 billion to $23.3 billion and EPS guidance of $12.12 to $12.34, broadly in line with Wall Street expectations. The outlook indicates continued growth across employer services and human-resources outsourcing. ADP Targets More Gains Ahead After Quarterly Growth
• Positive Sentiment: Analysts raised their price targets following the results: Guggenheim moved to $300 and upgraded ADP to “buy,” while BMO Capital Markets raised its target to $305. Stifel Nicolaus and Wells Fargo also lifted their targets to $285 and $283, respectively. Analyst Price-Target Updates
• Neutral Sentiment: Analyst ratings remain mixed. Guggenheim is bullish, but Stifel maintained “hold,” Wells Fargo kept “equal weight” and BMO retained “market perform,” suggesting some firms view the recent earnings-driven valuation improvement as largely reflected in the stock.
• Negative Sentiment: ADP’s strong results have already helped close what some analysts described as a valuation gap, potentially limiting near-term upside and encouraging investors to lock in gains after the earnings rally. ADP: Post-Earnings Rally Closed the Valuation Gap
• Negative Sentiment: Broader risk-off trading, including a sharp oil-price surge, U.S.-Iran tensions and pressure on the Nasdaq 100 ahead of the Federal Reserve’s decision, is adding to selling pressure on ADP and other large-cap stocks. Oil Spikes and Nasdaq 100 Sinks Before Fed Decision

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.