Automatic Data Processing (NASDAQ:ADP) Given New $244.00 Price Target at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald cut its price target on Automatic Data Processing from $306 to $244 while maintaining an "overweight" rating, implying roughly a 14.6% upside from the prior close.
• ADP beat Q3 estimates (EPS $3.37; revenue $5.94B) and raised FY‑2026 EPS guidance to 11.010–11.110, slightly above street consensus, supporting a positive fundamental outlook.
• The board approved a $6.0 billion share buyback (about 5.8% of shares outstanding), a move that typically signals management believes the stock is undervalued.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective dropped by stock analysts at Cantor Fitzgerald from $306.00 to $244.00 in a research note issued on Wednesday,MarketScreener reports. The brokerage currently has an "overweight" rating on the business services provider's stock. Cantor Fitzgerald's price objective would suggest a potential upside of 14.59% from the company's previous close.

A number of other analysts have also weighed in on ADP. Citigroup reduced their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a research report on Thursday, January 29th. JPMorgan Chase & Co. reduced their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research report on Thursday, January 29th. Morgan Stanley reduced their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research report on Tuesday. Guggenheim initiated coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective on the stock. 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 on the stock in a research report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus price target of $265.69.

Automatic Data Processing Trading Down 1.0%

Automatic Data Processing stock traded down $2.14 during midday trading on Wednesday, reaching $212.92. The stock had a trading volume of 865,997 shares, compared to its average volume of 3,414,481. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $329.93. The firm has a market cap of $85.73 billion, a price-to-earnings ratio of 20.46 and a beta of 0.85. The company has a fifty day moving average of $206.75 and a 200 day moving average of $238.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the company posted $3.06 EPS. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, analysts anticipate that Automatic Data Processing will post 10.96 earnings per share for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has approved a share buyback program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board believes its stock is undervalued.

Insider Transactions at Automatic Data Processing

In other news, VP David Foskett sold 266 shares of the firm's stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,809 shares of company stock valued at $410,410. 0.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors have recently bought and sold shares of ADP. Northwestern Mutual Wealth Management Co. increased its holdings in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after buying an additional 3,415,576 shares during the period. Cardano Risk Management B.V. increased its holdings in Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after buying an additional 3,223,855 shares during the period. Norges Bank purchased a new position in Automatic Data Processing during the fourth quarter valued at approximately $721,738,000. Wellington Management Group LLP increased its holdings in Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock valued at $2,004,691,000 after buying an additional 2,208,927 shares during the period. Finally, Clearbridge Investments LLC increased its holdings in Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock valued at $434,151,000 after buying an additional 964,405 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing News Roundup

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

• Positive Sentiment: ADP beat on the quarter: EPS $3.37 vs. ~$3.30 consensus and revenue $5.94B vs. ~$5.85B, with revenue up ~7% year‑over‑year and strong margins — a clear driver for upside in the stock. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: ADP raised FY‑2026 EPS guidance to a range of 11.010–11.110 (above consensus ~10.96) and gave revenue guidance roughly $21.8–$22.0B — management’s bullish guide is supporting the stock. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Management highlighted AI-driven product gains on the earnings call and emphasized execution as a catalyst for revenue and margin expansion — this thematic is being cited as a growth accelerator by investors. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: Full earnings materials and transcripts are available (slide deck, press release, call transcript) — useful for deep diligence but neutral by themselves. View Slide Deck Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Analysts and outlets (Zacks, Seeking Alpha) flag solid execution and client funds income as support for results — helpful context for modeling but not an immediate price mover. Compared to Estimates, ADP Q3 Earnings ADP 2026 Q3 - Results - Earnings Call Presentation
• Negative Sentiment: Some sell‑side reaction is pressuring the stock: Morgan Stanley cut its price target from $311 to $274 and moved to equal‑weight, which may limit near‑term upside despite the beat. Morgan Stanley Adjusts Price Target on Automatic Data Processing

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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