JPMorgan Chase & Co. Issues Pessimistic Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price target dropped by JPMorgan Chase & Co. from $295.00 to $275.00 in a report released on Thursday,Benzinga reports. The firm presently has an “underweight” rating on the business services provider’s stock. JPMorgan Chase & Co.‘s price target suggests a potential upside of 11.42% from the stock’s previous close.

ADP has been the subject of several other reports. Citigroup started coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective for the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Stifel Nicolaus reduced their price objective on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a research report on Thursday. Finally, Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research report on Tuesday. They set an “overweight” rating and a $306.00 target price on the stock. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $295.38.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $246.82 on Thursday. The stock has a market capitalization of $99.83 billion, a PE ratio of 23.73 and a beta of 0.86. The business’s 50 day simple moving average is $258.36 and its 200 day simple moving average is $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. Automatic Data Processing has a one year low of $243.68 and a one year high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the previous year, the company earned $2.35 EPS. The company’s revenue for the quarter 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. As a group, research analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current year.

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

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 900 shares of the stock in a transaction that occurred on 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 sale, the vice president directly owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,249 shares of company stock valued at $589,852 in the last quarter. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $25,000. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing during the second quarter worth about $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing in the 2nd quarter worth about $26,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the 2nd quarter valued at about $27,000. Finally, Solstein Capital LLC bought a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $28,000. 80.03% of the stock is currently owned by 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

About Automatic Data Processing

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.