Automatic Data Processing (NASDAQ:ADP) Stock Price Target Raised at Stifel Nicolaus

Key Points

• Stifel Nicolaus raised ADP’s price target from $285 to $305 while maintaining a “Hold” rating, implying 6.88% upside from the previous close.
• ADP reported quarterly results ahead of expectations, with EPS of $2.82 versus the $2.77 consensus and revenue of $5.49 billion, up 6.1% year over year.
• Analyst sentiment remains broadly cautious: the stock has an average “Hold” rating and a $282.07 consensus target, despite strong institutional ownership of 80.03%.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective raised by investment analysts at Stifel Nicolaus from $285.00 to $305.00 in a report issued on Thursday, Benzinga reports. The firm presently has a "hold" rating on the business services provider's stock. Stifel Nicolaus's price target would indicate a potential upside of 6.88% from the company's previous close.

ADP has been the subject of a number of other reports. Citigroup raised their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Morgan Stanley increased their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. UBS Group increased their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. Finally, BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $282.07.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $285.37 on Thursday. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $309.40. The stock has a market capitalization of $113.08 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 2.75 and a beta of 0.83. The stock has a 50-day moving average of $276.79 and a 200 day moving average of $240.57. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping the consensus estimate 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 period in the previous year, the firm posted $2.49 EPS. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. Sell-side analysts anticipate that Automatic Data Processing will post 12.27 EPS for the current fiscal year.

Insider Activity at Automatic Data Processing

In other news, VP Brian L. Michaud sold 120 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares of the company's stock, valued at $5,158,227.40. This represents a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of Automatic Data Processing stock in a transaction on 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 transaction, the vice president owned 13,193 shares in the company, valued at $3,694,040. The trade was a 5.70% decrease in their position. 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 valued at $8,809,422 over the last quarter. 0.15% of the stock is owned by insiders.

Institutional Trading of Automatic Data Processing

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Automatic Data Processing in the second quarter valued at approximately $8,097,229,000. Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $1,231,175,000. Deutsche Bank AG acquired a new stake in Automatic Data Processing in the 2nd quarter valued at $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Automatic Data Processing by 3.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock worth $952,112,000 after purchasing an additional 129,376 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Automatic Data Processing in the 2nd quarter valued at about $725,513,000. Institutional investors own 80.03% of the company's stock.

Key Automatic Data Processing News

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

• Positive Sentiment: ADP exceeded quarterly expectations. Fiscal Q1 2027 adjusted EPS was $2.82 versus the $2.77 consensus, while revenue rose 6.1% year over year to $5.49 billion, narrowly topping the $5.48 billion estimate. EPS increased from $2.49 in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now forecasts adjusted EPS growth of approximately 10% to 12% and lifted its client-funds interest-income outlook to $1.59 billion-$1.61 billion, supporting expectations for stronger profitability. ADP Fiscal 2027 Outlook
• Positive Sentiment: AI adoption is emerging as a growth catalyst. Management highlighted momentum from artificial-intelligence initiatives, which could improve product demand and support longer-term growth in ADP’s payroll and human-resources businesses. ADP Earnings Call: AI Momentum, Guidance Raised
• Positive Sentiment: A new PNC partnership expands distribution. PNC Payroll by ADP will integrate payroll, HR, benefits and workforce tools into PNC’s digital-banking platform for small businesses, potentially creating a new channel for customer acquisition. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst opinion remains divided. Guggenheim raised its target to $340, but UBS maintained a Hold rating. Jefferies increased its target to $250 while retaining an Underperform rating—implying meaningful downside from the reported $285.37 reference price. ADP also trades at roughly 26 times earnings, leaving the shares sensitive to any slowdown in growth.

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.

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