Automatic Data Processing (NASDAQ:ADP) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Key Points

• BMO Capital Markets raised its price target for ADP from $248 to $305, implying 11.63% potential upside, while maintaining a “market perform” rating.
• ADP exceeded quarterly expectations with earnings of $2.64 per share and revenue of $5.47 billion, up 6.8% year over year. The company also issued fiscal 2027 EPS guidance of $12.12–$12.34.
• Analyst sentiment remains cautious overall: ADP has an average “Hold” rating and a consensus price target of $261.07, despite shares recently trading at $273.22.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective hoisted by BMO Capital Markets from $248.00 to $305.00 in a report released on Wednesday. The firm presently has a "market perform" rating on the business services provider's stock. BMO Capital Markets' price target points to a potential upside of 11.63% from the stock's previous close.

A number of other analysts have also weighed in on the stock. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Wells Fargo & Company upped their price target on shares of Automatic Data Processing from $214.00 to $248.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. 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. Stifel Nicolaus increased their price objective on Automatic Data Processing from $240.00 to $260.00 and gave the company a "hold" rating in a report on Wednesday, July 8th. Finally, Jefferies Financial Group decreased their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $261.07.

Automatic Data Processing Stock Performance

Shares of ADP stock traded up $9.05 during trading on Wednesday, reaching $273.22. The company had a trading volume of 3,150,105 shares, compared to its average volume of 3,145,346. Automatic Data Processing has a one year low of $188.16 and a one year high of $315.98. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $109.21 billion, a PE ratio of 25.49 and a beta of 0.83. The firm's 50 day simple moving average is $233.13 and its two-hundred day simple moving average is $224.26.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter last year, the company earned $2.26 earnings per share. The firm's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts forecast that Automatic Data Processing will post 11.08 earnings per share for the current year.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors have recently made changes to their positions in ADP. Regent Peak Wealth Advisors LLC raised its holdings in shares of Automatic Data Processing by 3.4% in the second quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider's stock valued at $475,000 after purchasing an additional 69 shares during the last quarter. Bank & Trust Co lifted its holdings in shares of Automatic Data Processing by 1.3% in the second quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock worth $875,000 after buying an additional 50 shares in the last quarter. Annex Advisory Services LLC raised its holdings in shares of Automatic Data Processing by 3.9% in the 2nd quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider's stock valued at $660,000 after acquiring an additional 111 shares in the last quarter. Whitener Capital Management Inc. purchased a new position in shares of Automatic Data Processing in the 2nd quarter worth about $207,000. Finally, Tema ETFs LLC boosted its stake in shares of Automatic Data Processing by 9.3% in the 2nd quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider's stock valued at $1,531,000 after purchasing an additional 580 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Key Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share, above the $2.59 analyst consensus, while revenue rose 6.8% year over year to $5.47 billion, also topping estimates. Earnings increased from $2.26 per share in the year-ago period. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Growth was broad-based and profitability improved. Reports cited gains across employer services and human resources outsourcing, along with higher client-funds income and productivity benefits that helped lift margins and profits. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Fiscal 2027 guidance was viewed as solid. ADP forecast earnings of $12.12–$12.34 per share and revenue of $23.0–$23.3 billion. The guidance brackets the consensus estimates of $12.19 per share and $23.1 billion in revenue, suggesting management expects continued expansion rather than a slowdown. ADP Targets More Gains Ahead After Quarterly Growth
• Neutral Sentiment: Broader market conditions remain challenging. A sharp oil-price surge tied to renewed U.S.-Iran tensions pressured major equity indexes ahead of the Federal Reserve’s decision. ADP’s defensive, recurring-revenue profile may have attracted investors, but market volatility could limit further gains. Oil Spikes 7%, Nasdaq 100 Sinks Before Fed

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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