Automatic Data Processing (NASDAQ:ADP) Hits New 52-Week Low Following Analyst Downgrade

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price hit a new 52-week low during mid-day trading on Thursday after Morgan Stanley lowered their price target on the stock from $311.00 to $274.00. Morgan Stanley currently has an equal weight rating on the stock. Automatic Data Processing traded as low as $246.72 and last traded at $247.6770, with a volume of 994245 shares. The stock had previously closed at $250.69.

Several other brokerages have also recently weighed in on ADP. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday. JPMorgan Chase & Co. reduced their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday. Citigroup dropped their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday. Finally, Cantor Fitzgerald started coverage on Automatic Data Processing in a research note on Tuesday. They issued an “overweight” rating and a $306.00 target price on the stock. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average target price of $295.38.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Tuesday, January 13th. The shares were 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 in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,249 shares of company stock worth $589,852 over the last quarter. Corporate insiders own 0.20% of the company’s stock.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Q4 / Q2 results and guidance — ADP beat revenue and EPS estimates, showed broad-based growth and margin stability, and set FY26 EPS guidance above street projections; management reiterated an upbeat outlook and a buyback. These execution and capital-allocation signals support the stock’s upward reaction. ADP Q4 Deep Dive
• Positive Sentiment: Earnings call takeaways — summaries and highlights (management tone, buyback, and stronger Employer Services performance) reinforced the beat-and-raise narrative that underpins near-term fundamentals. ADP Earnings Call Highlights
• Neutral Sentiment: New coverage and analyst reports — Cantor Fitzgerald initiated coverage and independent analyst notes (Argus) provide fresh research flow that can increase trading interest but are mixed in directional impact. Coverage Initiated at Cantor Fitzgerald Analyst Report: Automatic Data Processing Inc.
• Negative Sentiment: Multiple price‑target cuts and downgrades — Morgan Stanley, Citigroup, JPMorgan, Wells Fargo and Stifel trimmed targets and moved to neutral/underweight/hold stances, signaling reduced analyst conviction and pressuring investor sentiment despite upside still implied by some revised targets. Benzinga coverage of analyst actions
• Negative Sentiment: 52‑week low headline — reports that ADP hit a 52‑week low attract attention and can trigger short-term selling or defensive positioning by momentum and quant funds. Adp stock hits 52-week low

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of ADP. Sigma Planning Corp boosted its position in Automatic Data Processing by 1.8% during the 4th quarter. Sigma Planning Corp now owns 4,717 shares of the business services provider’s stock valued at $1,213,000 after buying an additional 83 shares during the period. North Star Investment Management Corp. lifted its stake in shares of Automatic Data Processing by 2.7% in the 4th quarter. North Star Investment Management Corp. now owns 2,041 shares of the business services provider’s stock valued at $525,000 after purchasing an additional 54 shares during the period. Activest Wealth Management lifted its position in Automatic Data Processing by 275.6% during the fourth quarter. Activest Wealth Management now owns 169 shares of the business services provider’s stock valued at $43,000 after buying an additional 124 shares during the period. Heritage Investment Group Inc. lifted its position in Automatic Data Processing by 13.1% during the 4th quarter. Heritage Investment Group Inc. now owns 2,927 shares of the business services provider’s stock valued at $753,000 after acquiring an additional 339 shares during the period. Finally, Cardinal Capital Management lifted its holdings in shares of Automatic Data Processing by 0.5% during the fourth quarter. Cardinal Capital Management now owns 43,262 shares of the business services provider’s stock valued at $11,201,000 after purchasing an additional 194 shares during the last quarter. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 0.3%

The stock has a 50 day simple moving average of $258.36 and a 200-day simple moving average of $277.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.05. The firm has a market cap of $99.83 billion, a PE ratio of 23.73 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. Automatic Data Processing’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the prior year, the firm posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 2.8%. Automatic Data Processing’s payout ratio is currently 65.38%.

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

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.