Wells Fargo & Company Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price objective lowered by analysts at Wells Fargo & Company from $262.00 to $214.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s target price points to a potential upside of 4.64% from the stock’s current price.

A number of other research analysts have also weighed in on the company. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup reduced their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective on the stock. Finally, JPMorgan Chase & Co. dropped 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 report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $284.77.

Automatic Data Processing Trading Up 1.2%

Shares of NASDAQ:ADP opened at $204.51 on Friday. Automatic Data Processing has a 52-week low of $198.59 and a 52-week high of $329.93. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market capitalization of $82.34 billion, a P/E ratio of 19.66 and a beta of 0.86. The company has a 50-day simple moving average of $224.94 and a 200 day simple moving average of $254.36.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing announced that its Board of Directors has authorized a stock repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, 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 transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. The trade was a 6.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 4,058 shares of company stock worth $1,000,263. 0.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $27,000. TruNorth Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $28,000. Finally, Bard Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $28,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.