Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $240.00 by Analysts at Stifel Nicolaus

Key Points

• Stifel Nicolaus cut its price target for Automatic Data Processing to $240 from $270, implying roughly a 14.5% upside; the stock's consensus rating remains a "Hold" with an average analyst target of $254.40.
• Fundamentals remain solid: ADP beat quarterly estimates (EPS $3.37 vs. $3.30) and raised FY2026 guidance to $11.01–$11.11 EPS, while its board approved a $6 billion share buyback.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price target cut by equities research analysts at Stifel Nicolaus from $270.00 to $240.00 in a research report issued on Thursday,MarketScreener reports. Stifel Nicolaus' price target points to a potential upside of 14.54% from the stock's previous close.

A number of other equities analysts have also recently commented on ADP. Guggenheim assumed coverage on Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target on the stock. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. TD Cowen lifted their price target on Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a research report on Thursday. Morgan Stanley dropped their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Tuesday. Finally, Citigroup dropped their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $254.40.

Automatic Data Processing Price Performance

NASDAQ:ADP traded down $2.40 during mid-day trading on Thursday, reaching $209.54. The stock had a trading volume of 244,022 shares, compared to its average volume of 3,417,466. 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 firm has a 50 day moving average price of $206.67 and a two-hundred day moving average price of $238.64. The stock has a market capitalization of $84.37 billion, a P/E ratio of 19.57 and a beta of 0.85. Automatic Data Processing has a one year low of $188.16 and a one year 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 EPS for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business's quarterly revenue was up 7.0% on a year-over-year basis. During the same period in the previous year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, analysts expect that Automatic Data Processing will post 11.06 earnings per share for the current year.

Automatic Data Processing announced that its board has approved a share repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board believes its shares are undervalued.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction dated 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 sale, the vice president owned 15,310 shares of the company's stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,809 shares of company stock worth $410,410. 0.20% of the stock is owned by insiders.

Institutional Trading of Automatic Data Processing

Institutional investors have recently made changes to their positions in the business. Mitchell Capital Management Co. grew its position in shares of Automatic Data Processing by 325.0% during the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock worth $1,996,000 after purchasing an additional 5,200 shares in the last quarter. Atlantic Union Bankshares Corp grew its holdings in Automatic Data Processing by 136.0% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock valued at $14,080,000 after buying an additional 27,644 shares in the last quarter. CIBC Asset Management Inc lifted its stake in shares of Automatic Data Processing by 2.6% in the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider's stock valued at $53,875,000 after purchasing an additional 4,720 shares during the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock valued at $40,566,000 after purchasing an additional 21,444 shares during the last quarter. Finally, Hilltop Holdings Inc. bought a new stake in shares of Automatic Data Processing in the 3rd quarter valued at approximately $5,292,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing News Summary

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

• Positive Sentiment: Q3 beat and guidance lift — ADP reported EPS of $3.37 and raised FY2026 adjusted EPS growth to 10%–11% and revenue growth to 6%–7%, supporting revenue resiliency and higher forward earnings expectations. ADP forecasts FY 2026 adjusted EPS growth of 10%-11% as it raises revenue
• Positive Sentiment: Company commentary highlighted strong payroll services demand and AI-related gains on the earnings call, reinforcing the revenue/operating leverage story. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: UBS raised its price target to $218 with a “neutral” rating — a modest upside relative to current levels that signals limited near-term analyst enthusiasm. Automatic Data Processing NASDAQ: ADP Price Target Raised to $218.00 at UBS Group
• Neutral Sentiment: TD Cowen nudged its target to $216 (hold), another small upward tweak that keeps expectations broadly in the “flat to modest upside” camp. TD Cowen Issues Positive Forecast for Automatic Data Processing NASDAQ: ADP Stock Price
• Neutral Sentiment: Cantor Fitzgerald cut its target to $244 from $306 but retained an overweight rating — still implying upside, though the reset tempering upside expectations from prior levels. Cantor Fitzgerald adjusts price target on Automatic Data Processing
• Negative Sentiment: Citigroup lowered its target meaningfully (from $265 to $230) and kept a neutral stance — a direct headwind that likely weighs on sentiment despite the beat. Automatic Data Processing NASDAQ: ADP Given New $230.00 Price Target at Citigroup
• Negative Sentiment: Mixed analyst moves and valuation debate — while some targets were raised, several were trimmed and commentators are re-assessing valuation after the recent rebound, creating short-term uncertainty. Assessing Automatic Data Processing’s Valuation After Recent Share Price Rebound
• Negative Sentiment: Technical/market context: ADP’s 50-day SMA sits below the 200-day SMA and current price sits well under its one-year high — technical resistance and mixed macro tone may pressure the stock despite fundamentals. (Company filings and market data)

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.