Wells Fargo & Company Issues Pessimistic Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price objective reduced by equities research analysts at Wells Fargo & Company from $272.00 to $262.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s target price points to a potential upside of 6.15% from the company’s current price.

A number of other research firms also recently commented on ADP. Stifel Nicolaus dropped their price target on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating on the stock in a research report on Thursday. Citigroup assumed coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective on the stock. Cantor Fitzgerald started 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. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Finally, Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $295.38.

Automatic Data Processing Stock Up 0.3%

ADP opened at $246.82 on Thursday. The stock’s 50 day moving average price is $258.36 and its 200 day moving average price 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. The stock has a market cap of $99.83 billion, a P/E ratio of 23.73 and a beta of 0.86. Automatic Data Processing has a 12 month low of $243.68 and a 12 month high of $329.93.

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

Automatic Data Processing declared that its Board of Directors has approved a stock repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Automatic Data Processing

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 shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP David Kwon sold 900 shares of the business’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president directly owned 11,993 shares in the company, 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. Over the last three months, insiders sold 2,249 shares of company stock worth $589,852. 0.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

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

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.