Automatic Data Processing (NASDAQ:ADP) Rating Increased to Equal Weight at Wells Fargo & Company

Key Points

• Wells Fargo upgraded ADP from “underweight” to “equal weight” and assigned a $214 price target, implying essentially no downside from the current share price.
• Analyst sentiment remains mixed overall, with MarketBeat showing a consensus rating of “Hold” and a consensus price target of $253.50 after several recent target changes from other firms.
• ADP recently reported better-than-expected quarterly results, including EPS of $3.37 and revenue of $5.94 billion, while also issuing FY 2026 EPS guidance of $11.01 to $11.11.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) was upgraded by research analysts at Wells Fargo & Company from an "underweight" rating to an "equal weight" rating in a research note issued on Monday. The firm currently has a $214.00 price objective on the business services provider's stock. Wells Fargo & Company's target price would indicate a potential downside of 0.22% from the company's current price.

Other equities research analysts have also recently issued reports about the stock. Citigroup decreased their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. UBS Group raised their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. TD Cowen lifted their price objective on Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a report on Thursday, April 30th. Argus lowered their price objective on shares of 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. Finally, JPMorgan Chase & Co. dropped their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $253.50.

Automatic Data Processing Stock Performance

Shares of ADP opened at $214.48 on Monday. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The company's fifty day moving average is $206.29 and its 200 day moving average is $233.49. The stock has a market capitalization of $85.73 billion, a PE ratio of 20.01 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its 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. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. During the same quarter in the previous year, the business earned $3.06 EPS. The company's quarterly revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts expect that Automatic Data Processing will post 11.07 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of ADP. Mitchell Capital Management Co. increased 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 shares of Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock worth $14,080,000 after buying an additional 27,644 shares in the last quarter. CIBC Asset Management Inc raised its position in shares of Automatic Data Processing by 2.6% in the third quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider's stock valued at $53,875,000 after buying an additional 4,720 shares during the last quarter. Thrivent Financial for Lutherans raised its position in shares of Automatic Data Processing by 18.4% in the third quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock valued at $40,566,000 after buying an additional 21,444 shares during the last quarter. Finally, Hilltop Holdings Inc. purchased a new position in shares of Automatic Data Processing in the third quarter worth about $5,292,000. 80.03% of the stock is owned by institutional investors and hedge funds.

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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