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

Key Points

• UBS Group has revised its price target for Automatic Data Processing (ADP) stock from $315.00 to $290.00, maintaining a "neutral" rating.
• Despite UBS's pessimism, other analysts have increased their price targets, with TD Securities raising its target to $321.00 and Stifel Nicolaus to $318.00, while the overall consensus target price remains at $314.73.
• Automatic Data Processing reported strong earnings with $2.26 EPS for the last quarter, surpassing estimates, and its revenue has increased by 6.3% year-over-year.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price target lowered by UBS Group from $315.00 to $290.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the business services provider's stock. UBS Group's price target suggests a potential downside of 0.68% from the company's current price.

ADP has been the topic of several other reports. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. Stifel Nicolaus boosted their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Morgan Stanley boosted their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Two research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and an average price target of $314.73.

Automatic Data Processing Stock Performance

NASDAQ:ADP traded up $1.05 during mid-day trading on Wednesday, hitting $292.00. The stock had a trading volume of 4,039,574 shares, compared to its average volume of 1,574,773. The stock has a market capitalization of $118.27 billion, a price-to-earnings ratio of 29.26, a P/E/G ratio of 2.66 and a beta of 0.82. The company has a 50 day simple moving average of $301.59 and a 200-day simple moving average of $304.00. Automatic Data Processing has a 52 week low of $272.18 and a 52 week high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.23 by $0.03. The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. Automatic Data Processing's quarterly revenue was up 6.3% compared to the same quarter last year. During the same period last year, the firm posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP David Foskett sold 1,373 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president directly owned 11,781 shares in the company, valued at $3,493,891.17. The trade was a 10.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Michael A. Bonarti sold 8,728 shares of the business's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the sale, the vice president owned 80,531 shares in the company, valued at $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 52,516 shares of company stock worth $15,632,410. Company insiders own 0.21% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ADP. Vanguard Group Inc. grew its holdings in shares of Automatic Data Processing by 0.9% during the 2nd quarter. Vanguard Group Inc. now owns 41,300,182 shares of the business services provider's stock valued at $12,736,976,000 after acquiring an additional 350,298 shares in the last quarter. State Street Corp boosted its position in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider's stock valued at $5,820,445,000 after purchasing an additional 187,415 shares during the last quarter. Geode Capital Management LLC boosted its position in Automatic Data Processing by 3.1% during the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider's stock valued at $3,511,698,000 after purchasing an additional 345,798 shares during the last quarter. Laurel Wealth Advisors LLC boosted its position in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider's stock valued at $1,439,845,000 after purchasing an additional 4,653,304 shares during the last quarter. Finally, Invesco Ltd. boosted its position in Automatic Data Processing by 13.5% during the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider's stock valued at $1,411,449,000 after purchasing an additional 544,968 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.