Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $248.00

Key Points

• Wells Fargo raised its price target on Automatic Data Processing (ADP) from $214 to $248 while keeping an "equal weight" rating, implying about 2.75% upside from the stock’s current price.
• Analyst sentiment on ADP is mixed: the stock currently carries a consensus Hold rating, with a consensus target price of $248.64 across multiple firms.
• ADP recently beat quarterly expectations, reporting $3.37 EPS on $5.94 billion in revenue, and it guided FY2026 EPS to 11.01–11.11. The stock opened at $241.37 and has a market cap of $96.48 billion.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective upped by analysts at Wells Fargo & Company from $214.00 to $248.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the business services provider's stock. Wells Fargo & Company's target price points to a potential upside of 2.75% from the stock's current price.

Several other equities analysts have also recently issued reports on ADP. Argus decreased their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Jefferies Financial Group cut their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Robert W. Baird reduced their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Morgan Stanley dropped 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, April 28th. Finally, Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $240.00 to $260.00 and gave the stock a "hold" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $248.64.

Automatic Data Processing Price Performance

Shares of ADP opened at $241.37 on Thursday. The company has a market cap of $96.48 billion, a P/E ratio of 22.52 and a beta of 0.83. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm's 50 day moving average price is $222.62 and its 200 day moving average price is $225.10.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion during 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 company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, research analysts forecast that Automatic Data Processing will post 11.08 earnings per share for the current fiscal year.

Institutional Trading of Automatic Data Processing

Several institutional investors and hedge funds have recently made changes to their positions in the company. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing during the fourth quarter worth approximately $26,000. Bard Associates Inc. acquired a new position in shares of Automatic Data Processing in the 4th quarter valued at $28,000. Whipplewood Advisors LLC increased its holdings in shares of Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after acquiring an additional 137 shares during the period. Finally, Board of the Pension Protection Fund purchased a new stake in Automatic Data Processing in the 4th quarter valued at $31,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

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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