Automatic Data Processing, Inc. (NASDAQ:ADP) Given Consensus Rating of "Hold" by Analysts

Key Points

• Consensus "Hold": Fifteen analysts cover ADP with a consensus rating of Hold (2 sell, 10 hold, 2 buy, 1 strong buy) and an average 1‑year price target of $254.40.
• Q3 beat and raised outlook: ADP reported EPS of $3.37 vs. $3.30 expected and revenue of $5.94B vs. $5.85B, and set FY‑2026 EPS guidance of $11.010–$11.110 (analysts expect ≈$11.07).
• Capital returns and income: the board authorized a $6.00 billion share repurchase (≈5.8% of shares) and declared a quarterly dividend of $1.70 (annual $6.80, ~3.2% yield).

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have received a consensus rating of "Hold" from the fifteen research firms that are presently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, ten have given a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $254.40.

A number of analysts have issued reports on the stock. Robert W. Baird reduced their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday. Morgan Stanley reduced their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 28th. Jefferies Financial Group reduced their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday. Mizuho reduced their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday. Finally, Guggenheim assumed coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target on the stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $214.21 on Friday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.03 and a current ratio of 1.04. The company has a market cap of $86.25 billion, a P/E ratio of 19.98 and a beta of 0.83. The firm's fifty day moving average is $206.67 and its two-hundred day moving average is $238.32. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 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 7.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, analysts anticipate that Automatic Data Processing will post 11.07 EPS for the current fiscal year.

Automatic Data Processing announced that its board has authorized a share repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing's payout ratio is 63.43%.

Insider Transactions at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP David Foskett sold 266 shares of the business's stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,809 shares of company stock worth $410,410 in the last three months. Insiders own 0.20% of the company's stock.

Institutional Trading of Automatic Data Processing

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Automatic Data Processing by 0.9% in the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock worth $12,235,907,000 after buying an additional 389,451 shares during the last quarter. State Street Corp lifted its position in Automatic Data Processing by 0.7% in the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after buying an additional 133,039 shares during the last quarter. Geode Capital Management LLC lifted its position in Automatic Data Processing by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after buying an additional 136,876 shares during the last quarter. Capital Research Global Investors grew its holdings in Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock valued at $2,159,088,000 after purchasing an additional 372,413 shares during the last quarter. Finally, Wellington Management Group LLP grew its holdings in Automatic Data Processing by 8.0% during the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock valued at $1,896,944,000 after purchasing an additional 544,210 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Key Automatic Data Processing News

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

• Positive Sentiment: ADP beat Q3 estimates and raised guidance — the company reported EPS above expectations and lifted its FY‑2026 adjusted EPS growth to 10%–11% while raising revenue growth to 6%–7%, supporting stronger near‑term fundamentals and subscription demand. ADP forecasts FY 2026 adjusted EPS growth
• Positive Sentiment: UBS raised its price target to $218 (neutral rating) — a modest upgrade that signals some analysts see limited near‑term downside after the beat and guidance lift. ADP Price Target Raised to $218 at UBS Group
• Positive Sentiment: TD Cowen issued a positive forecast — another analyst backing a constructive view on ADP’s outlook, which can support buying interest after the earnings/guidance update. TD Cowen Issues Positive Forecast
• Positive Sentiment: Mizuho cut its target but left a high $305 target (still large upside) — shows some firms trimmed overly ambitious targets while maintaining a bullish long‑run view. Mizuho adjusts ADP PT to $305
• Neutral Sentiment: Citigroup cut its target to $230 and kept a neutral rating — less bullish than before but still implies upside; this reflects mixed analyst sentiment after the quarter. ADP Given New $230.00 Price Target at Citigroup
• Neutral Sentiment: Stifel lowered its PT to $240 (still above the current price) — a downgrade in target level but not a sell signal; suggests tempered upside expectations. Stifel Nicolaus adjusts ADP PT to $240
• Neutral Sentiment: Robert W. Baird trimmed its target to $270 — still a material upside, but the cut contributes to mixed analyst signals. Baird adjusts ADP PT to $270
• Neutral Sentiment: Cantor Fitzgerald cut its PT to $244 but kept an overweight rating — indicates confidence in longer‑term upside despite trimming near‑term valuation. Cantor Fitzgerald adjusts ADP PT to $244
• Negative Sentiment: Jefferies cut its price target sharply to $190 — the only firm in this batch with a below‑current‑price target, which could weigh on risk‑sentiment or prompt cautious positioning. Jefferies adjusts ADP PT to $190

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.

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