Citigroup Issues Pessimistic Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price target cut by equities research analysts at Citigroup from $303.00 to $265.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the business services provider’s stock. Citigroup’s target price indicates a potential upside of 7.37% from the stock’s current price.

ADP has been the topic of a number of other research reports. Stifel Nicolaus cut their target price on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating on the stock in a research note on Thursday. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. 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 report on Thursday. Cantor Fitzgerald began coverage on Automatic Data Processing in a research report on Tuesday. They issued an “overweight” rating and a $306.00 target price for the company. Finally, Wells Fargo & Company lowered their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday. Three 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’s stock. Based on data from MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and a consensus price target of $295.38.

Automatic Data Processing Price Performance

ADP opened at $246.82 on Thursday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing has a 52-week low of $243.68 and a 52-week high of $329.93. The stock has a market capitalization of $99.83 billion, a PE ratio of 23.73 and a beta of 0.86. The stock’s 50 day moving average price is $258.36 and its 200-day moving average price is $277.93.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm’s revenue was up 6.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, equities research analysts predict that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing announced that its board has authorized a stock repurchase program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction 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 sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the transaction, the vice president directly owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 2,249 shares of company stock valued at $589,852. 0.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in shares of Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after buying an additional 389,451 shares during the last quarter. State Street Corp lifted its position in Automatic Data Processing by 1.0% in the 2nd quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock valued at $5,820,445,000 after acquiring an additional 187,415 shares in the last quarter. Geode Capital Management LLC boosted its stake in Automatic Data Processing by 3.1% during the 2nd 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. Capital Research Global Investors increased its holdings in shares of Automatic Data Processing by 1.5% in the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after purchasing an additional 116,074 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake in shares of Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares during the last quarter. 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: 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

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.