Automatic Data Processing (NASDAQ:ADP) Given New $285.00 Price Target at Stifel Nicolaus

Automatic Data Processing (NASDAQ:ADP) had its price objective lifted by Stifel Nicolaus from $260.00 to $285.00 in a report issued on Thursday,Benzinga reports. The firm presently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus’ price objective would suggest a potential upside of 9.15% from the stock’s current price.

Other analysts have also recently issued research reports about the company. BMO Capital Markets boosted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research report on Wednesday. Weiss Ratings raised Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. Robert W. Baird reduced their target price on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. UBS Group upped their target price on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Finally, 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. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $267.50.

Automatic Data Processing Stock Down 4.5%

ADP stock traded down $12.27 during trading hours on Thursday, hitting $261.10. The company’s stock had a trading volume of 1,204,396 shares, compared to its average volume of 3,146,721. The company has a market capitalization of $104.37 billion, a PE ratio of 24.34 and a beta of 0.83. The stock has a 50 day moving average price of $234.18 and a two-hundred day moving average price of $224.32. The company has a quick ratio of 1.04, a current 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 $315.26.

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

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently made changes to their positions in ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Automatic Data Processing in the fourth quarter worth $26,000. Bard Associates Inc. bought a new position in Automatic Data Processing during the fourth quarter worth $28,000. Whipplewood Advisors LLC raised its stake in Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in Automatic Data Processing during the 4th quarter valued at $33,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing News Summary

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

• Positive Sentiment: Quarterly results beat expectations: ADP reported fiscal Q4 earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue rose 6.8% year over year to $5.47 billion, exceeding forecasts of $5.44 billion. Earnings increased from $2.26 per share in the prior-year quarter, supported by broad-based growth, client funds income and margin improvement. ADP Q4 Earnings Beat Estimates
• Positive Sentiment: Fiscal 2027 outlook remains constructive: Management guided to earnings per share of $12.12-$12.34 and revenue of $23.0-$23.3 billion, broadly in line with Wall Street expectations. The company expects continued growth in employer services and human resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Analysts raised price targets: Guggenheim increased its target from $270 to $300 and upgraded ADP to “buy.” Wells Fargo raised its target from $248 to $283 while maintaining an “equal weight” rating, and BMO lifted its target from $248 to $305 but retained a “market perform” view. These revisions indicate improved earnings expectations, although ratings remain mixed.
• Neutral Sentiment: Post-earnings valuation debate: Recent commentary says the earnings-driven rally has closed much of ADP’s valuation discount. Some analysts still view the stock as attractive, but the stronger share price leaves less room for upside if growth or guidance moderates. ADP Post-Earnings Valuation Analysis
• Negative Sentiment: Broader market weakness is weighing on the stock: A sharp oil-price spike tied to renewed U.S.-Iran tensions pressured the Nasdaq and broader equities ahead of the Federal Reserve’s rate decision, potentially offsetting ADP’s company-specific positives.

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.