Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $300.00

Automatic Data Processing (NASDAQ:ADP) had its target price boosted by Guggenheim from $270.00 to $300.00 in a report released on Thursday morning,Benzinga reports. Guggenheim currently has a buy rating on the business services provider’s stock.

A number of other research firms also recently issued reports on ADP. Argus cut their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a report on Tuesday, May 5th. BMO Capital Markets raised 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 report on Wednesday. Stifel Nicolaus lifted their price target on shares of Automatic Data Processing from $240.00 to $260.00 and gave the company a “hold” rating in a research report on Wednesday, July 8th. Wells Fargo & Company boosted their price target on Automatic Data Processing from $214.00 to $248.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Finally, Cantor Fitzgerald boosted their price target on Automatic Data Processing from $244.00 to $295.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $272.43.

Automatic Data Processing Trading Up 1.0%

Shares of Automatic Data Processing stock opened at $266.46 on Thursday. The firm has a 50-day moving average of $235.88 and a 200-day moving average of $224.60. The stock has a market cap of $106.51 billion, a PE ratio of 24.36 and a beta of 0.83. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $315.26. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly 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. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same period in the prior year, the company posted $2.26 earnings per share. Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts forecast that Automatic Data Processing will post 12.28 EPS for the current year.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the sale, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after buying an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. boosted its stake in Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after buying an additional 3,223,855 shares in the last quarter. Norges Bank acquired a new stake in Automatic Data Processing in the fourth quarter valued at about $721,738,000. Clearbridge Investments LLC grew its position in Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock valued at $434,151,000 after acquiring an additional 964,405 shares during the last quarter. Finally, Amundi grew its position in Automatic Data Processing by 27.7% in the first quarter. Amundi now owns 3,034,002 shares of the business services provider’s stock valued at $616,449,000 after acquiring an additional 658,932 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

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.