Guggenheim Boosts Automatic Data Processing (NASDAQ:ADP) Price Target to $300.00

Key Points

• Guggenheim raised its ADP price target to $300 from $270 and maintained a “buy” rating, implying 13.47% upside from the prior close.
• ADP beat quarterly expectations with EPS of $2.64 versus $2.59 expected and revenue of $5.47 billion, up 6.8% year over year. Management forecast fiscal 2027 adjusted EPS of $12.12–$12.34.
• Analyst sentiment remains mixed: ADP has an average “hold” rating and $263.21 consensus target, while the stock trades near $264 and institutional investors own about 80% of shares.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its target price boosted by equities researchers at Guggenheim from $270.00 to $300.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the business services provider's stock. Guggenheim's target price indicates a potential upside of 13.47% from the company's previous close.

Several other equities analysts have also recently issued reports on the company. TD Cowen lifted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a report on Monday, July 6th. Wells Fargo & Company upped their target price on Automatic Data Processing from $214.00 to $248.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Citigroup dropped their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. BMO Capital Markets lifted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday. Finally, Morgan Stanley decreased their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $263.21.

Automatic Data Processing Stock Down 3.3%

Shares of NASDAQ ADP opened at $264.38 on Thursday. The stock has a market capitalization of $105.68 billion, a price-to-earnings ratio of 24.62 and a beta of 0.83. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $315.26. The firm has a 50-day moving average price of $234.18 and a 200 day moving average price of $224.32. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued 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. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same period in the prior year, the business posted $2.26 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts anticipate that Automatic Data Processing will post 11.08 EPS for the current fiscal year.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently modified their holdings of ADP. Regent Peak Wealth Advisors LLC raised its stake in shares of Automatic Data Processing by 3.4% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider's stock valued at $475,000 after acquiring an additional 69 shares during the period. Bank & Trust Co increased its holdings in Automatic Data Processing by 1.3% in the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock valued at $875,000 after purchasing an additional 50 shares in the last quarter. Annex Advisory Services LLC increased its holdings in Automatic Data Processing by 3.9% in the 2nd quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider's stock valued at $660,000 after purchasing an additional 111 shares in the last quarter. Whitener Capital Management Inc. purchased a new position in Automatic Data Processing in the second quarter valued at about $207,000. Finally, Tema ETFs LLC raised its position in Automatic Data Processing by 9.3% in the second quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider's stock valued at $1,531,000 after purchasing an additional 580 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Key Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue reached $5.47 billion, ahead of the $5.44 billion forecast. Revenue increased 6.8% year over year, and EPS rose from $2.26 in the prior-year quarter. Broad-based growth, productivity gains and higher client-funds income supported margins and profits. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management expects growth to continue in fiscal 2027. ADP forecast adjusted EPS of $12.12–$12.34 and revenue of $23.0–$23.3 billion, broadly in line with Wall Street expectations. The outlook points to continued expansion in employer services and human-resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Some analysts view the shares favorably after the earnings rally. A Seeking Alpha analysis described ADP as still attractive despite the post-results valuation re-rating, while BMO raised its price target to $305 from $248, maintaining a “market perform” rating. Automatic Data Processing: Post-Earnings Rally Closed The Valuation Gap, Still A Buy
• Neutral Sentiment: Valuation has become a key debate. After a roughly 44% five-year gain, ADP trades near $273 and at approximately 25.5 times earnings. Commentary suggests the stock now looks reasonable rather than clearly discounted, making future gains more dependent on execution and guidance upgrades. Automatic Data Processing Stock Looks Reasonable After Its 44% Five Year Run
• Negative Sentiment: Macro and trading signals remain potential headwinds. A broader market sell-off tied to surging oil prices, U.S.-Iran tensions and interest-rate uncertainty could pressure defensive growth stocks. Separately, recent disclosed ADP insider activity showed sales and no purchases, a modest negative signal for sentiment.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.