Automatic Data Processing (ADP) Stock Price, News & Analysis

Company Overview

Automatic Data Processing, Inc. (NASDAQ: ADP) is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services. Through ADP TotalSource, its professional employer organization (PEO) business, the company also provides outsourced employment administration and HR support. Its services are used by employers and employees in the United States and international markets, including Canada, Europe, Latin America, and the Asia-Pacific region.

Founded in 1949 as Automatic Payrolls, Inc. by Henry Taub, the company adopted the name Automatic Data Processing in 1961 and expanded from payroll processing into broader employer services and technology. ADP is led by President and Chief Executive Officer Maria Black, who assumed the role in 2023.

Key Stats

• Today's Range: $267.55 to $274.56
• 50-Day Range: $235.73 to $287.48
• 52-Week Range: $188.16 to $299.22
• Volume: 1.81 million shs
• Average Volume: 1.96 million shs
• Market Capitalization: $106.45 billion
• P/E Ratio: 24.49
• Dividend Yield: 2.54%
• Price Target: $273.50
• Consensus Rating: Hold

Automatic Data Processing Stock Analysis - MarketRank™

Automatic Data Processing scored higher than 83% of companies evaluated by MarketBeat, and ranked 220th out of 656 stocks in the industrials sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.2 / 5
• Analyst Rating: Hold

Consensus Rating

Automatic Data Processing has received a consensus rating of Hold. The company's average rating score is 2.17, and is based on no strong buy ratings, 3 buy ratings, 8 hold ratings, and 1 sell rating.

Upside/Downside

The consensus price target for Automatic Data Processing is close to its current price, suggesting limited near-term upside or downside.

Amount of Analyst Coverage

Automatic Data Processing has been the subject of 10 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 9.30%

Earnings Growth

Earnings for Automatic Data Processing are expected to grow by 9.30% in the coming year, from $12.26 to $13.40 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Automatic Data Processing is 24.49, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 39.17.

Price to Earnings Ratio vs. Sector

The P/E ratio of Automatic Data Processing is 24.49, which means that it is trading at a less expensive P/E ratio than the Industrials sector average P/E ratio of about 25.87.

Price to Earnings Growth Ratio

Automatic Data Processing has a PEG Ratio of 2.52. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Automatic Data Processing has a P/B Ratio of 17.76. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.81% of the float of Automatic Data Processing has been sold short.

Short Interest Ratio / Days to Cover

Automatic Data Processing has a short interest ratio ("days to cover") of 5.17.

Change versus previous month

Short interest in Automatic Data Processing has recently decreased by 15.25%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Automatic Data Processing pays a meaningful dividend of 2.45%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Automatic Data Processing has been increasing its dividend for 49 years.

Dividend Coverage

The dividend payout ratio of Automatic Data Processing is 62.16%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Automatic Data Processing will have a dividend payout ratio of 50.75% next year. This indicates that Automatic Data Processing will be able to sustain or increase its dividend.

News and Social Media

• Score: 2.9 / 5
• News Sentiment: 0.72

News Sentiment

Automatic Data Processing has a news sentiment score of 0.72. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Industrials companies.

News Coverage This Week

MarketBeat has tracked 35 news articles for Automatic Data Processing this week, compared to 10 articles on an average week.

Search Interest

Only 9 people have searched for ADP on MarketBeat in the last 30 days. This is a decrease of -61% compared to the previous 30 days.

MarketBeat Follows

19 people have added Automatic Data Processing to their MarketBeat watchlist in the last 30 days. This is an increase of 73% compared to the previous 30 days.

Company Ownership

• Score: 1.4 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Automatic Data Processing insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $9,450,629.00 in company stock.

Percentage Held by Insiders

0.20% of the stock of Automatic Data Processing is held by insiders.

Percentage Held by Institutions

80.03% of the stock of Automatic Data Processing is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Company Calendar

• Record date for 7/1 Dividend: 6/12/2026
• Ex-Dividend for 7/1 Dividend: 6/12/2026
• Dividend Payable: 7/01/2026
• Last Earnings: 7/29/2026
• Today: 9/08/2026
• Citi’s 2026 Global TMT Conference: 9/09/2026
• Record date for 10/1 Dividend: 9/11/2026
• Ex-Dividend for 10/1 Dividend: 9/11/2026
• Dividend Payable: 10/01/2026
• Next Earnings (Estimated): 10/28/2026
• Fiscal Year End: 6/30/2027

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Industrials
• Industry: Professional Services
• Sub-Industry: Human Resource & Employment Services
• Current Symbol: NASDAQ:ADP
• CIK: 8670
• Web: www.adp.com
• Phone: (973) 974-5000
• Fax: 973-974-5390
• Employees: 67,000
• Year Founded: 1949

Price Target and Rating

• Average Price Target for Automatic Data Processing: $273.50
• High Price Target: $310.00
• Low Price Target: $190.00
• Potential Upside/Downside: +2.1%
• Consensus Rating: Hold
• Rating Score (0-4): 2.17
• Research Coverage: 12 Analysts

Profitability

• EPS (Trailing Twelve Months): $10.94
• Trailing P/E Ratio: 24.49
• Forward P/E Ratio: 21.86
• P/E Growth: 2.52
• Net Income: $4.41 billion
• Net Margins: 20.11%
• Pretax Margin: 26.11%
• Return on Equity: 71.34%
• Return on Assets: 6.73%

Debt

• Debt-to-Equity Ratio: 0.82
• Current Ratio: 1.05
• Quick Ratio: 1.05

Sales & Book Value

• Annual Sales: $21.95 billion
• Price / Sales: 4.85
• Cash Flow: $14.93 per share
• Price / Cash Flow: 17.95
• Book Value: $15.09 per share
• Price / Book: 17.76

Miscellaneous

• Outstanding Shares: 397,260,000
• Free Float: 396,468,000
• Market Cap: $106.45 billion
• Optionable: Optionable
• Beta: 0.82