Automatic Data Processing (NASDAQ:ADP) Hits New 52-Week Low - Here's Why

Key Points

• ADP hit a new 52-week low of about $196.53 as sentiment weakened after an ~18.5% post-earnings plunge and worries over data/privacy, macro headwinds and insider selling, alongside recent analyst downgrades that leave the stock vulnerable.
• Management is signaling confidence—ADP slightly beat quarterly EPS, set FY2026 guidance near $10.09–$11.01, declared a $1.70 quarterly dividend (~3.4% yield) and authorized a $6 billion buyback, even as analyst ratings remain mixed.

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $196.53 and last traded at $195.3760, with a volume of 84873 shares traded. The stock had previously closed at $200.78.

Key Automatic Data Processing News

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

• Positive Sentiment: Board declared a regular quarterly dividend of $1.70 per share, payable July 1 to holders of record June 12; yield ~3.4% — supports income investors and signals cash-flow confidence. ADP Declares Regular Quarterly Dividend
• Positive Sentiment: Coverage noting upgraded guidance and the dividend increase frames a potential catalyst for a recovery if management sustains guidance and execution. Upgraded Guidance And Dividend Hike Could Be A Game Changer For Automatic Data Processing (ADP)
• Neutral Sentiment: Preview commentary ahead of the next quarter’s results points to single-digit earnings growth expectations — not a high-growth setup but steady top-line visibility. Automatic Data Processing Earnings Preview
• Neutral Sentiment: Brokerage consensus remains around a "Hold/Average" stance in recent summaries — mixed analyst views leave the stock vulnerable to sentiment shifts. Automatic Data Processing Receives Average Rating of "Hold"
• Negative Sentiment: Social/market discussion highlights an 18.5% post-earnings plunge (Q4 beat but behind peers), concerns about data/privacy risks and macro headwinds, plus insider selling activity — these factors have pressured sentiment and likely explain today's weaker price action. ADP Opinions on Q4 Earnings and March Employment Data
• Negative Sentiment: Recent analyst underweights and a wide spread of price targets (median ~ $270 vs. current levels well below that) create downside risk if execution or employment trends disappoint. Analyst Ratings and Targets
• Neutral Sentiment: For a quick reference hub on price, news and historical quotes, see the Yahoo Finance ADP page. Yahoo Finance - ADP

Analyst Ratings Changes

ADP has been the subject of a number of research reports. JPMorgan Chase & Co. reduced their price objective on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Stifel Nicolaus reduced their price objective on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a research report on Monday, February 9th. Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Thursday, January 29th. Finally, Jefferies Financial Group reiterated an "underperform" rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $284.77.

Automatic Data Processing Price Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The stock has a 50-day simple moving average of $215.21 and a 200 day simple moving average of $248.42. The company has a market cap of $79.43 billion, a P/E ratio of 18.92 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business had revenue of $5.36 billion during the quarter, compared to analysts' expectations of $5.34 billion. During the same period in the prior year, the firm posted $2.35 EPS. Automatic Data Processing's quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, equities analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business 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 of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.4%. Automatic Data Processing's dividend payout ratio is presently 65.38%.

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

Insider Buying and Selling

In other news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company's stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of the stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares of the company's stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 3,158 shares of company stock valued at $766,263. 0.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds have recently modified their holdings of the stock. Imprint Wealth LLC acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $25,000. TruNorth Capital Management LLC acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $28,000. Cloud Capital Management LLC acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $29,000. Cornerstone Financial Management LLC acquired a new stake in Automatic Data Processing during the 4th quarter valued at $26,000. Finally, Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $32,000. 80.03% of the stock is owned by institutional investors and hedge funds.

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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