Automatic Data Processing (NASDAQ:ADP) Sets New 12-Month Low After Analyst Downgrade

Automatic Data Processing, Inc. (NASDAQ:ADP)’s share price hit a new 52-week low during trading on Thursday after Citigroup lowered their price target on the stock from $303.00 to $265.00. Citigroup currently has a neutral rating on the stock. Automatic Data Processing traded as low as $246.72 and last traded at $247.6770, with a volume of 994245 shares. The stock had previously closed at $250.69.

Several other analysts have also recently weighed in on ADP. JPMorgan Chase & Co. reduced their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday. Stifel Nicolaus decreased their target price on Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a research note on Thursday. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Wells Fargo & Company dropped their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $298.23.

Insider Transactions at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 2,249 shares of company stock valued at $589,852. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue $5.36B (+6.2% Y/Y); management raised FY2026 guidance. This fundamental beat and guidance lift are the primary positive catalysts. ADP boosts guidance after Q2 earnings, revenue beat on strong Employer Services performance
• Positive Sentiment: Management reiterated an upbeat outlook on the earnings call and emphasized a sizable buyback program (authorized $6B in January) — supports EPS accretion and signals management confidence in the share base. ADP Earnings Call Highlights Upbeat Outlook and Buyback
• Positive Sentiment: Product/AI innovation: ADP launched ADP Assist AI agents to automate HR and payroll tasks — strengthens product differentiation and addressable market for subscription services. ADP Accelerates AI Leadership with Launch of New AI Agents Designed to Solve Workforce Challenges
• Positive Sentiment: Sell-side interest: Cantor Fitzgerald initiated coverage with an overweight call, which can help buy-side attention and liquidity. Cantor Fitzgerald initiates coverage of Automatic Data Processing (ADP) with overweight recommendation
• Neutral Sentiment: Earnings materials and call transcript available for deeper read — management provided slides, a transcript and detailed metrics that investors can model into FY2026 EPS range of ~10.09–11.01. Automatic Data Processing Inc (ADP) Q2 2026 Earnings Call Highlights
• Negative Sentiment: Hiring weakness / valuation concerns: commentary that client headcount growth is soft and a recent analysis flagged that ADP still looks pricey given macro headwinds — these factors likely explain selling pressure despite the beat. Automatic Data Processing: Still Expensive Given Macro Headwinds

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. First Interstate Bank raised its holdings in Automatic Data Processing by 5.6% during the 4th quarter. First Interstate Bank now owns 3,748 shares of the business services provider’s stock valued at $964,000 after buying an additional 200 shares during the period. Mattern Capital Management LLC raised its stake in shares of Automatic Data Processing by 7.1% in the fourth quarter. Mattern Capital Management LLC now owns 36,488 shares of the business services provider’s stock valued at $9,386,000 after acquiring an additional 2,432 shares during the period. Sava Infond d.o.o. bought a new stake in shares of Automatic Data Processing in the 4th quarter worth about $283,000. Resonant Capital Advisors LLC grew its holdings in Automatic Data Processing by 4.3% during the 4th quarter. Resonant Capital Advisors LLC now owns 14,696 shares of the business services provider’s stock valued at $3,802,000 after purchasing an additional 606 shares during the last quarter. Finally, Concurrent Investment Advisors LLC lifted its stake in Automatic Data Processing by 25.2% in the fourth quarter. Concurrent Investment Advisors LLC now owns 46,617 shares of the business services provider’s stock worth $11,991,000 after purchasing an additional 9,375 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

The firm has a fifty day moving average of $258.55 and a two-hundred day moving average of $278.55. The stock has a market capitalization of $100.16 billion, a P/E ratio of 24.45 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm posted $2.35 earnings per share. The business’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. Automatic Data Processing’s payout ratio is 67.13%.

Automatic Data Processing declared that its Board of Directors has initiated a share repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

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.