BMO Capital Markets Forecasts Strong Price Appreciation for Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing (NASDAQ:ADP) had its price target upped by stock analysts at BMO Capital Markets from $248.00 to $305.00 in a research report issued to clients and investors on Wednesday. The brokerage presently has a “market perform” rating on the business services provider’s stock. BMO Capital Markets’ price objective suggests a potential upside of 11.63% from the company’s previous close.

ADP has been the subject of a number of other reports. Mizuho cut their price objective on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Robert W. Baird lowered their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Stifel Nicolaus upped their price target on Automatic Data Processing from $240.00 to $260.00 and gave the stock a “hold” rating in a report on Wednesday, July 8th. Citigroup cut their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. Finally, Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 28th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $261.07.

Automatic Data Processing Price Performance

ADP traded up $9.05 during trading hours on Wednesday, hitting $273.22. The company’s stock had a trading volume of 3,150,105 shares, compared to its average volume of 3,145,346. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $315.98. The stock has a market cap of $109.21 billion, a price-to-earnings ratio of 25.49 and a beta of 0.83. The business’s 50-day moving average price is $233.13 and its 200-day moving average price is $224.26.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts expect that Automatic Data Processing will post 11.08 earnings per share for the current fiscal year.

Institutional Trading of Automatic Data Processing

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

Automatic Data Processing News Roundup

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share, above the $2.59 analyst consensus, while revenue rose 6.8% year over year to $5.47 billion, also topping estimates. Earnings increased from $2.26 per share in the year-ago period. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Growth was broad-based and profitability improved. Reports cited gains across employer services and human resources outsourcing, along with higher client-funds income and productivity benefits that helped lift margins and profits. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Fiscal 2027 guidance was viewed as solid. ADP forecast earnings of $12.12–$12.34 per share and revenue of $23.0–$23.3 billion. The guidance brackets the consensus estimates of $12.19 per share and $23.1 billion in revenue, suggesting management expects continued expansion rather than a slowdown. ADP Targets More Gains Ahead After Quarterly Growth
• Neutral Sentiment: Broader market conditions remain challenging. A sharp oil-price surge tied to renewed U.S.-Iran tensions pressured major equity indexes ahead of the Federal Reserve’s decision. ADP’s defensive, recurring-revenue profile may have attracted investors, but market volatility could limit further gains. Oil Spikes 7%, Nasdaq 100 Sinks Before Fed

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.