Citigroup Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Key Points

• Citigroup cut its price target on ADP from $265 to $230 and kept a "neutral" rating (implying ~8.45% upside), while multiple other brokers have trimmed targets—leaving a consensus "Hold" rating and an average target of about $259.64.
• ADP beat Q3 estimates (EPS $3.37 vs. $3.30; revenue $5.94B vs. $5.85B), nudged FY26 guidance to 11.010–11.110 EPS, and highlighted AI-driven growth while authorizing a $6B buyback, yet shares traded down to $212.08 and remain below the 200‑day moving average.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price target reduced by research analysts at Citigroup from $265.00 to $230.00 in a report released on Thursday,Benzinga reports. The firm presently has a "neutral" rating on the business services provider's stock. Citigroup's target price suggests a potential upside of 8.45% from the company's current price.

Several other research firms have also issued reports on ADP. Wells Fargo & Company cut their price target on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday, March 27th. UBS Group cut their price target on shares of Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. JPMorgan Chase & Co. cut their price target 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. Cantor Fitzgerald cut their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a report on Wednesday. Finally, BMO Capital Markets cut their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $259.64.

Automatic Data Processing Stock Down 1.4%

ADP stock traded down $2.98 during trading on Thursday, hitting $212.08. 1,996,362 shares of the company's stock traded hands, compared to its average volume of 3,428,630. The firm has a market capitalization of $85.39 billion, a P/E ratio of 20.44 and a beta of 0.85. The business has a fifty day simple moving average of $206.75 and a two-hundred day simple moving average of $238.83. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued 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 for the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. Automatic Data Processing's revenue was up 7.0% compared to the same quarter last year. During the same period last year, the company posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts anticipate that Automatic Data Processing will post 10.96 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has authorized a share repurchase plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of the business's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company's stock, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,809 shares of company stock worth $410,410 over the last three months. Company insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the third quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new position in Automatic Data Processing during the fourth quarter valued at $26,000. TruNorth Capital Management LLC purchased a new position in Automatic Data Processing in the third quarter valued at $28,000. Bard Associates Inc. purchased a new position in Automatic Data Processing in the fourth quarter valued at $28,000. Finally, Cloud Capital Management LLC purchased a new position in Automatic Data Processing in the third quarter valued at $29,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing News Summary

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

• Positive Sentiment: Q3 results beat expectations — ADP reported EPS of $3.37 (vs. ~$3.30 consensus) and revenue of $5.94B, with revenue up ~7% year‑over‑year. The beat supports continued core business momentum. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: ADP nudged FY26 guidance slightly above Street forecasts (EPS guide 11.010–11.110 vs. consensus ~10.96), a signal management sees sustained earnings power. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Management highlighted AI-driven product gains on the earnings call, which it cited as a growth catalyst and part of the upward guidance discussion. This frames longer‑term incremental revenue/efficiency upside. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: Full earnings materials and call transcript/slide deck are available for deeper diligence — useful for parsing customer commentary, margin drivers, and AI pipeline details. Earnings Slide Deck Q3 2026 Earnings Call Transcript
• Negative Sentiment: Two firms trimmed price targets this week — Cantor Fitzgerald cut its PT to $244 (keeps Overweight) and Morgan Stanley trimmed its PT to $274 (keeps Equal‑Weight). Those downgrades reduce upside expectations and likely weigh on sentiment despite the beat. Cantor Fitzgerald Adjusts Price Target on Automatic Data Processing to $244 from $306; Maintains Overweight Morgan Stanley Adjusts Price Target on Automatic Data Processing to $274 from $311; Maintains Equal‑Weight

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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