Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $305.00 by Analysts at Mizuho

Key Points

• Mizuho cut its price target on Automatic Data Processing to $305 from $332, a level that still implies roughly a 45.6% upside from ADP’s current share price.
• ADP beat Q3 estimates and raised guidance, reporting $3.37 EPS vs. $3.30 expected and $5.94B revenue, while setting FY2026 guidance around $11.01–$11.11 EPS and authorizing a $6 billion share buyback.
• Analysts have been mixed — several firms trimmed targets leaving a MarketBeat consensus rating of Hold with an average target of $254.40 — and the stock (~$209.54) faces near-term technical pressure with its 50-day SMA below the 200-day SMA.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective decreased by investment analysts at Mizuho from $332.00 to $305.00 in a research note issued to investors on Thursday,MarketScreener reports. Mizuho's price objective indicates a potential upside of 45.56% from the company's current price.

Several other research analysts have also recently issued reports on the company. Citigroup cut their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday. Guggenheim started coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price on the stock. JPMorgan Chase & Co. cut their target price on 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. Jefferies Financial Group cut their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday. Finally, Stifel Nicolaus cut their target price on Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and an average target price of $254.40.

Automatic Data Processing Stock Down 1.1%

Shares of NASDAQ:ADP traded down $2.40 during mid-day trading on Thursday, hitting $209.54. 244,022 shares of the company traded hands, compared to its average volume of 3,417,466. The stock has a market cap of $84.37 billion, a P/E ratio of 19.57 and a beta of 0.85. The company has a current ratio of 1.04, a quick ratio of 1.03 and a debt-to-equity ratio of 0.63. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $329.93. The stock has a 50-day moving average price of $206.67 and a two-hundred day moving average price of $238.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.30 by $0.07. The company 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%.Automatic Data Processing's quarterly revenue was up 7.0% on a year-over-year basis. 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, equities research analysts forecast that Automatic Data Processing will post 11.06 earnings per share for the current year.

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

Insider Buying and Selling

In related news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,809 shares of company stock worth $410,410. 0.20% of the stock is owned by company insiders.

Institutional Trading of Automatic Data Processing

Several hedge funds have recently made changes to their positions in ADP. Mitchell Capital Management Co. raised its position in Automatic Data Processing by 325.0% during the 3rd quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock valued at $1,996,000 after purchasing an additional 5,200 shares during the last quarter. Atlantic Union Bankshares Corp raised its position 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 purchasing an additional 27,644 shares during the last quarter. CIBC Asset Management Inc raised its position in Automatic Data Processing by 2.6% during 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 raised its position in Automatic Data Processing by 18.4% during 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 position in Automatic Data Processing during the 3rd quarter valued at approximately $5,292,000. 80.03% of the stock is currently owned by institutional investors.

More Automatic Data Processing News

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)

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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