UBS Group Issues Positive Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Key Points

• UBS Group raised its price target to $218 for ADP while keeping a "neutral" rating, implying only about a 2.9% upside from the current share price.
• ADP beat Q3 expectations with EPS of $3.37 and revenue of $5.94B, and nudged FY‑2026 guidance to $11.010–$11.110 EPS (slightly above Street estimates), with management citing AI-driven product gains as a growth catalyst.
• The company’s board authorized a $6.0 billion share repurchase (up to ~5.8% of shares outstanding), signaling management's view that the stock may be undervalued.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its target price lifted by research analysts at UBS Group from $210.00 to $218.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the business services provider's stock. UBS Group's price target would suggest a potential upside of 2.86% from the company's current price.

Other equities analysts have also recently issued reports about the company. BMO Capital Markets reduced their target price on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Wells Fargo & Company reduced their target price on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a research note on Friday, March 27th. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Cantor Fitzgerald reduced their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research note on Wednesday. Finally, TD Cowen boosted their target price on Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $260.21.

Automatic Data Processing Trading Down 1.5%

Shares of ADP traded down $3.12 during mid-day trading on Thursday, hitting $211.94. 4,253,417 shares of the company's stock traded hands, compared to its average volume of 3,456,790. 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. The firm has a market capitalization of $85.34 billion, a P/E ratio of 20.38 and a beta of 0.85. The business's 50-day moving average price is $206.75 and its 200-day moving average price is $238.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results 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. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same period in the previous year, the firm earned $3.06 earnings per share. The business's revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, sell-side analysts forecast that Automatic Data Processing will post 10.96 EPS for the current fiscal year.

Automatic Data Processing declared that its board has initiated a share repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,809 shares of company stock valued at $410,410 in the last 90 days. Corporate insiders own 0.20% of the company's stock.

Institutional Trading of Automatic Data Processing

Several institutional investors have recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing during the 4th quarter valued at about $26,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $28,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing during the 4th quarter valued at about $28,000. Finally, Cloud Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $29,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

More Automatic Data Processing News

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

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.

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