Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $240.00 by Analysts at Argus

Automatic Data Processing (NASDAQ:ADP) had its target price reduced by equities researchers at Argus from $300.00 to $240.00 in a research note issued on Tuesday,MarketScreener reports. The brokerage currently has a “buy” rating on the business services provider’s stock. Argus’ price objective would suggest a potential upside of 15.27% from the stock’s previous close.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Tuesday, April 28th. Mizuho dropped their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. JPMorgan Chase & Co. decreased 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 report on Thursday, January 29th. Citigroup lowered their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a research report on Thursday, April 30th. Finally, BMO Capital Markets lowered their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research report on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus price target of $253.50.

Automatic Data Processing Trading Down 1.5%

Shares of Automatic Data Processing stock opened at $208.20 on Tuesday. The stock has a 50 day moving average of $206.67 and a 200 day moving average of $237.99. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The firm has a market capitalization of $83.83 billion, a price-to-earnings ratio of 19.39 and a beta of 0.83. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company’s quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, research analysts predict that Automatic Data Processing will post 11.07 earnings per share for the current year.

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

Insiders Place Their Bets

In related news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, 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. Insiders have sold 1,809 shares of company stock worth $410,410 over the last three months. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors have recently modified their holdings of the business. Mitchell Capital Management Co. raised its stake in Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock valued at $1,996,000 after buying an additional 5,200 shares in the last quarter. Atlantic Union Bankshares Corp lifted its holdings in Automatic Data Processing by 136.0% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock worth $14,080,000 after buying an additional 27,644 shares during the last quarter. CIBC Asset Management Inc boosted its position in shares of Automatic Data Processing by 2.6% during the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock worth $53,875,000 after acquiring an additional 4,720 shares in the last quarter. Thrivent Financial for Lutherans increased its holdings in shares of Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock valued at $40,566,000 after acquiring an additional 21,444 shares during the last quarter. Finally, Hilltop Holdings Inc. purchased a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $5,292,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.