Guggenheim Reaffirms “Buy” Rating for Automatic Data Processing (NASDAQ:ADP)

Automatic Data Processing (NASDAQ:ADP)‘s stock had its “buy” rating reaffirmed by equities research analysts at Guggenheim in a report issued on Thursday, Benzinga reports. They presently have a $340.00 price target on the business services provider’s stock. Guggenheim‘s price target suggests a potential upside of 19.24% from the stock’s previous close.

Several other equities research analysts also recently weighed in on ADP. Stifel Nicolaus raised their price objective on Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a report on Thursday. Wells Fargo & Company lifted their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. UBS Group lifted 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. BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a report on Wednesday, July 29th. Finally, Cantor Fitzgerald increased their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and an average price target of $282.07.

Automatic Data Processing Price Performance

NASDAQ:ADP traded down $0.23 during trading hours on Thursday, reaching $285.14. 250,133 shares of the company were exchanged, compared to its average volume of 2,833,703. The business has a 50 day moving average of $276.79 and a 200 day moving average of $240.57. The company has a market capitalization of $112.99 billion, a P/E ratio of 26.00, a P/E/G ratio of 2.75 and a beta of 0.83. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $309.40.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating the consensus estimate of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same period last year, the firm earned $2.49 EPS. Research analysts forecast that Automatic Data Processing will post 12.27 EPS for the current year.

Insider Buying and Selling

In other news, VP David Kwon sold 798 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the sale, the vice president directly owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president directly owned 18,442 shares in the company, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 31,359 shares of company stock valued at $8,809,422. Corporate insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of ADP. Bell Investment Advisors Inc grew its stake in shares of Automatic Data Processing by 107.2% in the third quarter. Bell Investment Advisors Inc now owns 518 shares of the business services provider’s stock worth $134,000 after acquiring an additional 268 shares during the last quarter. Columbia Bank grew its holdings in shares of Automatic Data Processing by 9.2% during the third quarter. Columbia Bank now owns 3,061 shares of the business services provider’s stock valued at $790,000 after buying an additional 259 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $179,592,000. Aviance Capital Partners LLC boosted its position in shares of Automatic Data Processing by 0.4% during the third 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 last quarter. Finally, Vise Technologies Inc. purchased a new position in shares of Automatic Data Processing during the third quarter valued at approximately $7,168,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Q1 earnings beat expectations: ADP reported adjusted earnings of $2.82 per share, above the $2.77 consensus estimate and up from $2.49 a year earlier. Revenue increased 6.1% year over year to $5.49 billion, narrowly exceeding estimates. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Fiscal 2027 outlook was raised: Management now expects adjusted EPS growth of approximately 10% to 12%. The company also increased its outlook for client funds interest revenue to $1.59 billion-$1.61 billion, providing a meaningful earnings tailwind. ADP Fiscal 2027 Outlook
• Positive Sentiment: AI adoption is adding momentum: Management highlighted continued demand for AI-enabled HR and payroll offerings during its earnings call, suggesting potential for stronger client engagement and long-term growth. ADP Earnings Call
• Positive Sentiment: New banking partnership expands distribution: PNC Bank and ADP announced an embedded payroll solution that integrates payroll, HR, benefits and workforce tools into PNC’s digital banking platform for small businesses. PNC Bank and ADP Partnership
• Neutral Sentiment: Stifel raised its price target to $305 from $285 but maintained a “hold” rating, indicating modest upside while signaling that the valuation may largely reflect recent gains.
• Negative Sentiment: Jefferies remains cautious: It lifted its target to $250 from $225 but kept an “underperform” rating, implying substantial downside from the referenced share price and highlighting disagreement over ADP’s valuation or growth prospects.

Automatic Data Processing Company Profile

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.