Cantor Fitzgerald Issues Positive Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Key Points

• Cantor Fitzgerald raised its ADP price target from $295 to $310 and maintained an “overweight” rating, implying 16.34% upside from the reported share price.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average target price of $273.50, with three Buy, nine Hold, and one Sell ratings.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share versus a $2.59 consensus estimate and $5.47 billion in revenue, up 6.8% year over year.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price target increased by stock analysts at Cantor Fitzgerald from $295.00 to $310.00 in a report issued on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the business services provider's stock. Cantor Fitzgerald's price target indicates a potential upside of 16.34% from the company's current price.

Other analysts also recently issued research reports about the company. Stifel Nicolaus raised their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research note on Thursday. Jefferies Financial Group dropped their price target on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. TD Cowen boosted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Finally, Mizuho lowered their target price 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 given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $266.46 on Monday. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $315.26. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05. The stock has a market cap of $106.51 billion, a P/E ratio of 24.36 and a beta of 0.81. The firm has a 50 day moving average price of $235.88 and a 200 day moving average price of $224.33.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period last year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts expect that Automatic Data Processing will post 12.28 EPS for the current year.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the company's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company's stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new position in Automatic Data Processing in the fourth quarter valued at approximately $26,000. Bard Associates Inc. bought a new position in Automatic Data Processing in the fourth quarter valued at approximately $28,000. Whipplewood Advisors LLC increased its position in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after purchasing an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $33,000. Institutional investors own 80.03% of the company's stock.

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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