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

Automatic Data Processing (NASDAQ:ADP) had its price target decreased by investment analysts at Morgan Stanley from $311.00 to $274.00 in a research report issued on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the business services provider’s stock. Morgan Stanley’s price target indicates a potential upside of 11.01% from the company’s current price.

ADP has been the subject of several other research reports. JPMorgan Chase & Co. lowered their price target 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. Wells Fargo & Company reduced their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a report on Tuesday. They set an “overweight” rating and a $306.00 target price for the company. Stifel Nicolaus cut their price target on Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating on the stock in a report on Thursday. Finally, 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 report on Tuesday, December 16th. Three 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. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $295.38.

Automatic Data Processing Price Performance

ADP opened at $246.82 on Thursday. The company has a market capitalization of $99.83 billion, a price-to-earnings ratio of 23.73 and a beta of 0.86. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12-month low of $243.68 and a 12-month high of $329.93. The business’s fifty day simple moving average is $258.36 and its 200-day simple moving average is $277.93.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the company posted $2.35 earnings per share. The firm’s quarterly 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. On average, equities research analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a share buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, VP David Kwon sold 806 shares of the company’s stock in a transaction 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 transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This represents a 6.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 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 position. The SEC filing for this sale provides additional information. Insiders have sold 2,249 shares of company stock worth $589,852 over the last three months. Corporate insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently bought and sold shares of the company. Exchange Traded Concepts LLC grew its stake in Automatic Data Processing by 141.5% during the 3rd quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after buying an additional 7,782 shares during the last quarter. CIBC Asset Management Inc lifted its stake in Automatic Data Processing by 2.6% in the third quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock valued at $53,875,000 after buying an additional 4,720 shares during the last quarter. Treasurer of the State of North Carolina boosted its holdings in shares of Automatic Data Processing by 35.2% in the second quarter. Treasurer of the State of North Carolina now owns 312,473 shares of the business services provider’s stock valued at $96,367,000 after acquiring an additional 81,323 shares during the period. Farther Finance Advisors LLC grew its position in shares of Automatic Data Processing by 17.5% during the third quarter. Farther Finance Advisors LLC now owns 13,956 shares of the business services provider’s stock worth $4,096,000 after acquiring an additional 2,075 shares during the last quarter. Finally, Peak Financial Advisors LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter valued at $2,309,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.