Automatic Data Processing (NASDAQ:ADP) Given New $283.00 Price Target at Wells Fargo & Company

Automatic Data Processing (NASDAQ:ADP) had its price target lifted by equities research analysts at Wells Fargo & Company from $248.00 to $283.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an “equal weight” rating on the business services provider’s stock. Wells Fargo & Company‘s price target suggests a potential upside of 9.62% from the stock’s current price.

A number of other brokerages have also recently issued reports on ADP. Mizuho decreased their target price on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Stifel Nicolaus lifted their price target on Automatic Data Processing from $240.00 to $260.00 and gave the stock a “hold” rating in a research note on Wednesday, July 8th. TD Cowen upped their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research note on Monday, July 6th. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research report on Wednesday. Finally, UBS Group upped 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. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $265.71.

Automatic Data Processing Price Performance

Shares of ADP traded down $15.20 during mid-day trading on Thursday, hitting $258.17. The company’s stock had a trading volume of 521,406 shares, compared to its average volume of 3,139,845. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a 50-day moving average price of $234.18 and a 200 day moving average price of $224.32. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.26. The stock has a market capitalization of $103.20 billion, a price-to-earnings ratio of 24.04 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The business had revenue of $5.47 billion during 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%. The business’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts predict that Automatic Data Processing will post 11.08 EPS for the current fiscal year.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently modified their holdings of ADP. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the third quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing during the 4th quarter worth about $26,000. Bard Associates Inc. purchased a new stake in shares of Automatic Data Processing during the 4th quarter worth about $28,000. Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing during the 4th quarter worth about $33,000. Finally, High Point Wealth Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter valued at about $34,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

More Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue reached $5.47 billion, ahead of the $5.44 billion forecast. Revenue increased 6.8% year over year, and EPS rose from $2.26 in the prior-year quarter. Broad-based growth, productivity gains and higher client-funds income supported margins and profits. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management expects growth to continue in fiscal 2027. ADP forecast adjusted EPS of $12.12–$12.34 and revenue of $23.0–$23.3 billion, broadly in line with Wall Street expectations. The outlook points to continued expansion in employer services and human-resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Some analysts view the shares favorably after the earnings rally. A Seeking Alpha analysis described ADP as still attractive despite the post-results valuation re-rating, while BMO raised its price target to $305 from $248, maintaining a “market perform” rating. Automatic Data Processing: Post-Earnings Rally Closed The Valuation Gap, Still A Buy
• Neutral Sentiment: Valuation has become a key debate. After a roughly 44% five-year gain, ADP trades near $273 and at approximately 25.5 times earnings. Commentary suggests the stock now looks reasonable rather than clearly discounted, making future gains more dependent on execution and guidance upgrades. Automatic Data Processing Stock Looks Reasonable After Its 44% Five Year Run
• Negative Sentiment: Macro and trading signals remain potential headwinds. A broader market sell-off tied to surging oil prices, U.S.-Iran tensions and interest-rate uncertainty could pressure defensive growth stocks. Separately, recent disclosed ADP insider activity showed sales and no purchases, a modest negative signal for sentiment.

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.