Automatic Data Processing (NASDAQ:ADP) Research Coverage Started at Guggenheim

Guggenheim began coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research note published on Thursday morning, MarketBeat Ratings reports. The brokerage issued a buy rating and a $270.00 price target on the business services provider’s stock.

Other equities analysts have also issued reports about the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. Morgan Stanley dropped their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. JPMorgan Chase & Co. reduced their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, Wells Fargo & Company decreased their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $208.72 on Thursday. Automatic Data Processing has a twelve month low of $203.26 and a twelve month high of $329.93. The firm has a market cap of $84.04 billion, a PE ratio of 20.07 and a beta of 0.86. 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 business has a fifty day moving average of $229.28 and a 200-day moving average of $256.66.

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 the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the company earned $2.35 EPS. The firm’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, equities research analysts predict that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

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

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Insider Activity

In other news, VP David Kwon sold 900 shares of the business’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the transaction, the vice president owned 11,993 shares of the company’s stock, valued at $3,118,180. The trade was a 6.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,058 shares of company stock worth $1,000,263 in the last ninety days. Company insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Vanguard Group Inc. lifted its holdings in shares of Automatic Data Processing by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after purchasing an additional 389,451 shares in the last quarter. State Street Corp grew its position in shares of Automatic Data Processing by 0.7% in the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock valued at $4,903,769,000 after purchasing an additional 133,039 shares during the period. Geode Capital Management LLC increased its stake in Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock worth $2,977,777,000 after purchasing an additional 136,876 shares in the last quarter. Capital Research Global Investors increased its stake in Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock worth $2,159,088,000 after purchasing an additional 372,413 shares in the last quarter. Finally, Wellington Management Group LLP raised its holdings in Automatic Data Processing by 8.0% during the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock worth $1,896,944,000 after buying an additional 544,210 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Key Automatic Data Processing News

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

• Positive Sentiment: Guggenheim initiated coverage of ADP with a Buy / Strong‑Buy rating and a $270 price target (roughly ~29% upside from recent levels); the firm argued AI fears are premature and flagged ADP’s durable cash flows and dividend profile as positives. Guggenheim initiates coverage of Automatic Data Processing (ADP) with buy recommendation Guggenheim Initiates ADP as Buy, Says Fears around AI Are Premature Zacks summary
• Neutral Sentiment: ADP was highlighted in dividend-stock writeups (InsiderMonkey / other outlets) emphasizing its ~3%+ yield and steady income characteristics — supports longer-term investor interest but is not an immediate catalyst. 5 Dividend Stocks to Buy for Steady Income
• Neutral Sentiment: Published short‑interest data in feeds shows a large March “increase,” but the print is internally inconsistent (zeros/NaN). This appears to be a data error and shouldn’t be treated as a genuine short‑squeeze signal without corrected filings.
• Negative Sentiment: MarketWatch noted ADP underperformed peers recently despite some daily gains, a reminder that positive analyst notes don’t always produce immediate outperformance — investors may be taking profits or reacting to broader market/sector pressure. Automatic Data Processing Inc. stock underperforms

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.