Automatic Data Processing (NASDAQ:ADP) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS Group raised its price target on Automatic Data Processing to $270 from $260, while keeping a neutral rating. That implies about 11% upside from the stock’s current price.
• ADP’s latest earnings beat expectations, with $3.37 EPS versus the $3.30 consensus and revenue of $5.94 billion, up 7% year over year. The company also issued FY2026 EPS guidance of 11.01 to 11.11.
• The stock was trading down 1.5% on Wednesday to $242.61, but analyst sentiment remains broadly mixed-to-positive. Across Wall Street, ADP currently has an average Hold rating and an average target price of $256.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its target price increased by stock analysts at UBS Group from $260.00 to $270.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the business services provider's stock. UBS Group's price objective would suggest a potential upside of 11.29% from the stock's current price.

ADP has been the topic of a number of other research reports. Jefferies Financial Group reduced their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. TD Cowen increased their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Wells Fargo & Company lifted their price objective on shares of Automatic Data Processing from $214.00 to $248.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Guggenheim restated a "buy" rating and set a $270.00 price objective on shares of Automatic Data Processing in a report on Tuesday. Finally, Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and an average target price of $256.00.

Automatic Data Processing Trading Down 1.5%

ADP traded down $3.61 during trading on Wednesday, reaching $242.61. 763,653 shares of the company's stock were exchanged, compared to its average volume of 3,165,727. The company's fifty day moving average price is $229.52 and its 200-day moving average price is $224.51. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The firm has a market capitalization of $96.98 billion, a PE ratio of 22.67 and a beta of 0.83.

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 earnings per share for the quarter, beating 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 company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the business posted $3.06 EPS. The firm'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. As a group, equities analysts forecast that Automatic Data Processing will post 11.08 EPS for the current year.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently made changes to their positions in the stock. Northcape Wealth Management LLC raised its position in Automatic Data Processing by 0.6% during the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after buying an additional 39 shares during the last quarter. Rathbones Group PLC increased its stake in shares of Automatic Data Processing by 1.1% in the fourth quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock worth $1,036,000 after acquiring an additional 42 shares during the period. Zullo Investment Group Inc. raised its holdings in shares of Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock worth $485,000 after purchasing an additional 42 shares during the last quarter. Trilogy Capital Inc. lifted its position in Automatic Data Processing by 5.3% during the fourth quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider's stock valued at $219,000 after purchasing an additional 43 shares during the period. Finally, Blossom Wealth Management lifted its position in Automatic Data Processing by 3.1% during the fourth quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider's stock valued at $378,000 after purchasing an additional 44 shares during the period. Institutional investors own 80.03% of the company's stock.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Cantor Fitzgerald raised its price target on ADP to $295 from $244 and reiterated an overweight rating, signaling confidence in more upside from current levels.
• Positive Sentiment: Guggenheim reaffirmed its buy rating and set a $270 price target, adding to the bullish analyst backdrop ahead of earnings.
• Positive Sentiment: Investors are encouraged by reports that ADP shares have gained 23% over the past three months, with margin expansion, earnings growth, dividend support, and strong liquidity helping drive the move. ADP Stock Gains 23% in 3 Months: Here's What You Should Know
• Positive Sentiment: Analysts say ADP has the ingredients for a likely earnings beat in next week’s report, which is supporting expectations for continued growth. Automatic Data Processing (ADP) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
• Neutral Sentiment: ADP’s June private-sector hiring report came in slightly below expectations, with 98,000 jobs added versus forecasts for 110,000, but the reading was still positive and did not suggest a major deterioration. ADP Says June Private Sector Hiring Grew Slightly Below Expectations
• Neutral Sentiment: The latest ADP National Employment Report preliminary estimate showed private employers added an average of 16,500 jobs per week for the four weeks ending July 4, offering a steady but unspectacular read on labor-market conditions. ADP National Employment Report Preliminary Estimate for July 4, 2026
• Negative Sentiment: MarketWatch noted the stock underperformed peers on Tuesday, suggesting some near-term relative weakness despite the broader positive trend. Automatic Data Processing Inc. stock underperforms Tuesday when compared to competitors

Automatic Data Processing Company Profile

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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