Automatic Data Processing's (ADP) "Buy" Rating Reaffirmed at Guggenheim

Key Points

• Guggenheim reaffirmed a “buy” rating on Automatic Data Processing and kept its $270 price target, implying about 7.3% upside from the prior close.
• Other analysts have been more mixed, with several recently cutting price targets; overall, ADP now has a consensus “Hold” rating and an average target price of $248.64.
• ADP recently reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, while also guiding FY2026 EPS to 11.01–11.11.

Automatic Data Processing (NASDAQ:ADP - Get Free Report)'s stock had its "buy" rating restated by equities researchers at Guggenheim in a note issued to investors on Tuesday,Benzinga reports. They currently have a $270.00 price objective on the business services provider's stock. Guggenheim's price objective points to a potential upside of 7.31% from the company's previous close.

Several other equities analysts have also commented on the stock. Robert W. Baird decreased their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Argus cut their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. BMO Capital Markets decreased their price target on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. UBS Group raised their price target on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. Finally, Mizuho dropped their price objective on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $248.64.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP traded down $3.64 during trading on Tuesday, reaching $251.60. The stock had a trading volume of 115,822 shares, compared to its average volume of 3,163,409. The business has a fifty day moving average price of $228.87 and a 200-day moving average price of $224.58. 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 stock has a market cap of $100.57 billion, a PE ratio of 23.52 and a beta of 0.83. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $315.98.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.30 by $0.07. The company had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing's revenue was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts forecast that Automatic Data Processing will post 11.08 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of ADP. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new position in Automatic Data Processing in the fourth quarter valued at approximately $26,000. Bard Associates Inc. acquired a new stake in Automatic Data Processing during the fourth quarter worth approximately $28,000. Whipplewood Advisors LLC raised its holdings in Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after purchasing an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc acquired a new stake in Automatic Data Processing during the 4th quarter worth $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

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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