Allspring Global Investments Holdings LLC Buys 5,714 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Allspring Global Investments Holdings LLC increased its stake in ADP by 12% in the first quarter, buying 5,714 additional shares and bringing its total holding to 53,157 shares worth about $10.7 million.
• ADP’s latest earnings topped expectations, with quarterly EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion, up 7% year over year. The company also raised its FY2026 EPS guidance to $11.01-$11.11.
• Analyst sentiment is mixed but generally constructive, with recent price-target increases from Cantor Fitzgerald and UBS helping offset some more cautious ratings. MarketBeat shows a consensus Hold rating and a target price of $256.

Allspring Global Investments Holdings LLC lifted its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 12.0% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 53,157 shares of the business services provider's stock after buying an additional 5,714 shares during the period. Allspring Global Investments Holdings LLC's holdings in Automatic Data Processing were worth $10,699,000 as of its most recent SEC filing.

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

Automatic Data Processing Stock Down 1.3%

Automatic Data Processing stock opened at $243.12 on Thursday. The firm has a market cap of $97.18 billion, a price-to-earnings ratio of 22.68 and a beta of 0.83. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98. 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 firm has a 50 day moving average price of $230.21 and a two-hundred day moving average price of $224.41.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the firm posted $3.06 EPS. The company'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. Equities analysts predict that Automatic Data Processing, Inc. will post 11.08 EPS for the current year.

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 meaningful upside from current levels. Cantor Fitzgerald raises ADP price target
• Positive Sentiment: UBS also lifted its price target on ADP to $270 from $260 while maintaining a neutral view, adding to the stock’s recent analyst support. UBS raises ADP price target
• Positive Sentiment: Zacks noted that ADP has gained about 23% over the past three months, supported by margin expansion, strong earnings growth, steady dividends, and solid liquidity. ADP stock gains 23% in 3 months
• Positive Sentiment: ADP said its latest weekly private payroll estimate showed U.S. private employers added an average of 16,500 jobs per week for the four weeks ending July 4, reinforcing the company’s payroll data relevance. ADP National Employment Report preliminary estimate
• Neutral Sentiment: ADP’s June private-sector hiring report came in slightly below economists’ expectations, with 98,000 jobs added versus forecasts for 110,000, which may temper enthusiasm but does not indicate a major setback. ADP June private-sector hiring report
• Neutral Sentiment: ADP is expected to report earnings next week, and Zacks says the setup still looks favorable for a potential earnings beat, but this remains an anticipatory catalyst rather than a confirmed result. ADP earnings expectations ahead of release
• Negative Sentiment: MarketWatch noted ADP underperformed peers on Tuesday, suggesting some near-term relative weakness versus competitors. ADP underperforms competitors

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Citigroup reduced their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a report on Thursday, April 30th. BMO Capital Markets cut their target price on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 7th. Wells Fargo & Company boosted their target price on shares of Automatic Data Processing from $214.00 to $248.00 and gave the stock an "equal weight" rating in a report on Thursday, July 9th. Cantor Fitzgerald upped their price target on shares of Automatic Data Processing from $244.00 to $295.00 and gave the company an "overweight" rating in a research report on Wednesday. Finally, Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $256.00.

Automatic Data Processing 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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