Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $295.00

Automatic Data Processing (NASDAQ:ADP) had its target price boosted by equities researchers at Citigroup from $287.00 to $295.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a “neutral” rating on the business services provider’s stock. Citigroup‘s price objective suggests a potential upside of 3.23% from the stock’s current price.

ADP has been the topic of several other reports. BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 29th. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, September 22nd. Jefferies Financial Group boosted their price target on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research note on Wednesday. UBS Group raised their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Finally, Morgan Stanley lifted their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average price target of $283.27.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP traded up $0.40 during mid-day trading on Thursday, reaching $285.77. 983,781 shares of the company were exchanged, compared to its average volume of 2,837,450. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $309.40. The company’s 50 day moving average price is $276.79 and its 200 day moving average price is $240.57. The stock has a market capitalization of $113.23 billion, a PE ratio of 26.09, a PEG ratio of 2.75 and a beta of 0.83. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter in the prior year, the firm earned $2.49 earnings per share. The firm’s revenue was up 6.1% on a year-over-year basis. Sell-side analysts forecast that Automatic Data Processing will post 12.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 798 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares in the company, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,359 shares of company stock worth $8,809,422 in the last quarter. 0.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the business. Trek Financial LLC bought a new stake in shares of Automatic Data Processing during the 3rd quarter valued at about $212,000. True Freedom Investing LLC raised its stake in Automatic Data Processing by 10.4% in the third quarter. True Freedom Investing LLC now owns 23,260 shares of the business services provider’s stock worth $6,003,000 after buying an additional 2,187 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich lifted its holdings in Automatic Data Processing by 57.5% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 621,487 shares of the business services provider’s stock worth $160,631,000 after buying an additional 226,942 shares during the period. Pinkerton Wealth LLC lifted its holdings in Automatic Data Processing by 9.2% in the third quarter. Pinkerton Wealth LLC now owns 23,604 shares of the business services provider’s stock worth $6,091,000 after buying an additional 1,985 shares during the period. Finally, Virtue Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $251,000. Institutional investors own 80.03% of the company’s stock.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Quarterly earnings beat expectations: ADP reported fiscal Q1 adjusted earnings of $2.82 per share, above the $2.77-$2.78 consensus, while revenue rose 6.1% year over year to $5.49 billion, slightly ahead of estimates. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Fiscal 2027 outlook was raised: Management now expects adjusted EPS growth of approximately 10%-12% and increased its client-funds interest outlook to $1.59 billion-$1.61 billion. The improved guidance, supported by operating growth and AI adoption, is a key reason for the positive investor reaction. ADP Raises Fiscal 2027 Outlook
• Positive Sentiment: Analysts raised targets: Guggenheim reaffirmed a Buy rating and set a $340 target, while Stifel Nicolaus lifted its target from $285 to $305 despite maintaining a Hold rating. Analyst Target Revisions
• Positive Sentiment: New distribution partnership: PNC Bank and ADP announced an embedded payroll offering that will integrate payroll, HR, benefits and workforce tools into PNC’s digital banking platform, potentially expanding ADP’s reach among small businesses. PNC and ADP Partnership
• Neutral Sentiment: Morgan Stanley raised its price target from $286 to $288 but kept an Equal Weight rating, indicating limited near-term conviction at the current valuation.
• Negative Sentiment: Jefferies increased its target from $225 to $250 but retained an Underperform rating, signaling concern that ADP’s valuation may already reflect much of its earnings and growth potential.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.