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

Automatic Data Processing (NASDAQ:ADP) had its price target increased by Citigroup from $287.00 to $295.00 in a report released on Thursday,Benzinga reports. They currently have a neutral rating on the business services provider’s stock.

Other equities research analysts also recently issued research reports about the stock. Morgan Stanley raised their price objective on shares of Automatic Data Processing from $286.00 to $288.00 and gave the company an “equal weight” rating in a research report on Thursday. TD Cowen lifted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a report on Monday, July 6th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $290.00 target price on shares of Automatic Data Processing in a research report on Thursday. Guggenheim reissued a “buy” rating and set a $340.00 target price on shares of Automatic Data Processing in a research note on Thursday. Finally, Stifel Nicolaus raised their price target on Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $283.27.

Automatic Data Processing Stock Up 2.7%

ADP stock opened at $293.84 on Thursday. Automatic Data Processing has a one year low of $188.16 and a one year high of $309.40. The stock has a market capitalization of $116.43 billion, a PE ratio of 26.05, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. The company has a fifty day moving average of $277.25 and a 200-day moving average of $240.83.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.77 by $0.05. The business had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The business’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.49 earnings per share. As a group, analysts expect that Automatic Data Processing will post 12.36 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were paid a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.3%. Automatic Data Processing’s dividend payout ratio is 60.28%.

Insider Activity at Automatic Data Processing

In related news, VP David Kwon sold 798 shares of the firm’s stock in a transaction dated Thursday, August 20th. The shares were 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 $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the sale, the vice president directly owned 18,442 shares in the company, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 31,359 shares of company stock valued at $8,809,422. Company insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pathway Financial Advisers LLC purchased a new position in Automatic Data Processing in the 3rd quarter valued at approximately $39,000. Chicago Partners Investment Group LLC raised its holdings in Automatic Data Processing by 15.1% during the third quarter. Chicago Partners Investment Group LLC now owns 9,480 shares of the business services provider’s stock worth $2,883,000 after purchasing an additional 1,243 shares during the last quarter. Covestor Ltd boosted its position in Automatic Data Processing by 16.5% during the third quarter. Covestor Ltd now owns 538 shares of the business services provider’s stock worth $139,000 after purchasing an additional 76 shares in the last quarter. Richardson Financial Services Inc. boosted its position in Automatic Data Processing by 82.7% during the third quarter. Richardson Financial Services Inc. now owns 709 shares of the business services provider’s stock worth $183,000 after purchasing an additional 321 shares in the last quarter. Finally, Ascent Group LLC boosted its position in Automatic Data Processing by 19.9% during the third quarter. Ascent Group LLC now owns 19,301 shares of the business services provider’s stock worth $4,981,000 after purchasing an additional 3,200 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

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.