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

Key Points

• Automatic Data Processing (NASDAQ:ADP) has a consensus analyst rating of "Hold" from 13 covering firms, with most ratings clustered at hold and the average price target at about $248.64.
• Recent analyst moves were mixed: several firms cut price targets on ADP, while Wells Fargo raised its target to $248 and kept an equal weight rating.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both above estimates, and it issued FY2026 EPS guidance of 11.01 to 11.11.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) has been given a consensus rating of "Hold" by the thirteen ratings firms that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $248.6429.

ADP has been the topic of several recent analyst reports. Cantor Fitzgerald dropped their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Mizuho dropped their price objective on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Wells Fargo & Company raised their target price on Automatic Data Processing from $214.00 to $248.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Jefferies Financial Group lowered their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Finally, BMO Capital Markets reduced their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research note on Tuesday, April 7th.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $256.56 on Friday. The firm has a market cap of $102.55 billion, a price-to-earnings ratio of 23.93 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $315.98. The firm's fifty day moving average price is $227.16 and its 200 day moving average price is $224.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating the consensus estimate of $3.30 by $0.07. The business 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%. The business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, sell-side analysts expect that Automatic Data Processing will post 11.08 EPS for the current year.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of ADP. Regent Peak Wealth Advisors LLC boosted its position in shares of Automatic Data Processing by 3.4% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider's stock worth $475,000 after buying an additional 69 shares in the last quarter. Bank & Trust Co boosted its stake in shares of Automatic Data Processing by 1.3% during the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock worth $875,000 after purchasing an additional 50 shares during the last quarter. Annex Advisory Services LLC grew its holdings in shares of Automatic Data Processing by 3.9% during the second quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider's stock worth $660,000 after buying an additional 111 shares in the last quarter. Whitener Capital Management Inc. acquired a new position in shares of Automatic Data Processing in the second quarter valued at approximately $207,000. Finally, Tema ETFs LLC raised its position in shares of Automatic Data Processing by 9.3% in the second quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider's stock valued at $1,531,000 after buying an additional 580 shares during the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

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.

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