Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $305.00

Automatic Data Processing (NASDAQ:ADP) had its price target lifted by investment analysts at Stifel Nicolaus from $285.00 to $305.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus‘s target price would indicate a potential upside of 6.88% from the stock’s current price.

A number of other equities analysts have also weighed in on ADP. Cantor Fitzgerald boosted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Wells Fargo & Company raised their target price on Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Jefferies Financial Group lifted their price target on Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a report on Wednesday. UBS Group boosted their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Finally, Weiss Ratings raised shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, September 22nd. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $282.07.

Automatic Data Processing Stock Down 2.6%

Shares of NASDAQ ADP opened at $285.37 on Thursday. The stock has a market cap of $113.08 billion, a PE ratio of 26.09, a P/E/G ratio of 2.75 and a beta of 0.83. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $309.40. The company has a 50-day moving average of $276.79 and a 200 day moving average of $240.57.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping the consensus estimate of $2.77 by $0.05. The business had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.48 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.49 EPS. As a group, sell-side analysts predict that Automatic Data Processing will post 12.27 EPS for the current fiscal year.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 798 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the sale, the vice president owned 13,193 shares in the company, valued at approximately $3,694,040. The trade was a 5.70% decrease in their position. The sale 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 Brian L. Michaud sold 120 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,359 shares of company stock worth $8,809,422 in the last three months. 0.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors have recently modified their holdings of the stock. Thrive Wealth Management LLC grew its holdings in shares of Automatic Data Processing by 3.5% during the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider’s stock worth $243,000 after purchasing an additional 37 shares during the period. Aviance Capital Partners LLC raised its holdings in shares of Automatic Data Processing by 0.4% in the 3rd quarter. Aviance Capital Partners LLC now owns 9,298 shares of the business services provider’s stock valued at $2,399,000 after buying an additional 37 shares during the period. Tanager Wealth Management LLP lifted its stake in Automatic Data Processing by 4.1% during the 3rd quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider’s stock worth $251,000 after acquiring an additional 38 shares in the last quarter. AMI Investment Management Inc. boosted its holdings in Automatic Data Processing by 3.6% during the 3rd quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider’s stock valued at $294,000 after acquiring an additional 40 shares during the period. Finally, Aull & Monroe Investment Management Corp grew its position in Automatic Data Processing by 0.3% in the 3rd quarter. Aull & Monroe Investment Management Corp now owns 15,668 shares of the business services provider’s stock valued at $4,043,000 after acquiring an additional 44 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing News Roundup

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

• Positive Sentiment: ADP exceeded quarterly expectations. Fiscal Q1 2027 adjusted EPS was $2.82 versus the $2.77 consensus, while revenue rose 6.1% year over year to $5.49 billion, narrowly topping the $5.48 billion estimate. EPS increased from $2.49 in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now forecasts adjusted EPS growth of approximately 10% to 12% and lifted its client-funds interest-income outlook to $1.59 billion-$1.61 billion, supporting expectations for stronger profitability. ADP Fiscal 2027 Outlook
• Positive Sentiment: AI adoption is emerging as a growth catalyst. Management highlighted momentum from artificial-intelligence initiatives, which could improve product demand and support longer-term growth in ADP’s payroll and human-resources businesses. ADP Earnings Call: AI Momentum, Guidance Raised
• Positive Sentiment: A new PNC partnership expands distribution. PNC Payroll by ADP will integrate payroll, HR, benefits and workforce tools into PNC’s digital-banking platform for small businesses, potentially creating a new channel for customer acquisition. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst opinion remains divided. Guggenheim raised its target to $340, but UBS maintained a Hold rating. Jefferies increased its target to $250 while retaining an Underperform rating—implying meaningful downside from the reported $285.37 reference price. ADP also trades at roughly 26 times earnings, leaving the shares sensitive to any slowdown in growth.

About Automatic Data Processing

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.