Automatic Data Processing (NASDAQ:ADP) Coverage Initiated at Cantor Fitzgerald

Equities research analysts at Cantor Fitzgerald began coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a report released on Tuesday, MarketBeat reports. The firm set an “overweight” rating and a $306.00 price target on the business services provider’s stock. Cantor Fitzgerald’s target price would indicate a potential upside of 22.06% from the stock’s current price.

A number of other analysts also recently weighed in on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Citigroup assumed coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Finally, Wells Fargo & Company decreased their price objective on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $306.38.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $250.69 on Tuesday. The stock has a 50-day simple moving average of $258.55 and a 200 day simple moving average of $278.55. Automatic Data Processing has a twelve month low of $247.18 and a twelve month high of $329.93. The stock has a market capitalization of $101.39 billion, a PE ratio of 24.75 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the firm posted $2.35 EPS. The company’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP David Kwon sold 806 shares of the stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock worth $589,852 over the last ninety days. Insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently made changes to their positions in ADP. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the 3rd quarter worth about $25,000. Harbor Asset Planning Inc. bought a new position in shares of Automatic Data Processing in the second quarter worth about $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Automatic Data Processing during the second quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $27,000. Finally, Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $28,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Q2 results topped estimates — EPS $2.62 vs. $2.58 and revenue up ~6.2% year-over-year; ADP said demand for payroll/HR services remains steady, and it nudged up parts of its outlook. ADP lifts annual revenue forecast on demand for payroll services
• Positive Sentiment: Cantor Fitzgerald initiated coverage with an “overweight” rating and $306 price target, signaling institutional optimism and ~22% upside to the cited target. Cantor Fitzgerald initiates coverage of Automatic Data Processing (ADP) with overweight recommendation
• Positive Sentiment: Management is advancing product innovation — ADP launched new AI “Assist” agents aimed at automating HR and payroll tasks, which could expand stickiness and long-term margins. ADP® Accelerates AI Leadership with Launch of New AI Agents Designed to Solve Workforce Challenges
• Positive Sentiment: Corporate actions: management recently authorized a sizable share-repurchase program (~$6B), which supports EPS and could be a catalyst as buybacks are deployed. 3 Large Cap Stocks Announce Big Buyback Boosts Amid +20% Falls (ADP)
• Neutral Sentiment: Earnings call and filings are available (transcript/slides) for deeper detail on segment trends and margin drivers; these materials will shape analyst revisions. Automatic Data Processing, Inc. (ADP) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Reported short-interest data in the feed is anomalous (zeros/NaN) and provides no actionable signal on current positioning. Short interest data (anomalous)
• Negative Sentiment: Valuation and macro concerns: at least one analyst note argues ADP remains expensive given macro headwinds (slower hiring), a key demand risk since ADP’s revenue is tied to payroll counts. Automatic Data Processing: Still Expensive Given Macro Headwinds
• Negative Sentiment: Guidance nuance: FY EPS range published sits near but slightly around consensus — some investors may view the guidance band and commentary as conservative relative to expectations, prompting profit-taking. ADP Reports Second Quarter Fiscal 2026 Results

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.