Stifel Nicolaus Lowers Automatic Data Processing (NASDAQ:ADP) Price Target to $270.00

Automatic Data Processing (NASDAQ:ADP) had its target price reduced by equities researchers at Stifel Nicolaus from $280.00 to $270.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus’ price target suggests a potential upside of 19.72% from the stock’s previous close.

Several other brokerages have also issued reports on ADP. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Morgan Stanley cut their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target on the stock. Two equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $225.53 on Monday. The stock’s 50-day moving average is $255.39 and its 200-day moving average is $274.17. Automatic Data Processing has a 1-year low of $223.44 and a 1-year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a market cap of $90.81 billion, a P/E ratio of 21.69 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping the consensus estimate 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 business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period last year, the company earned $2.35 EPS. The firm’s revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts anticipate 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 initiated a stock buyback program 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 purchase up to 5.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP David Foskett sold 266 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This trade represents a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

A number of institutional investors and hedge funds have recently bought and sold shares of ADP. Vanguard Group Inc. increased its stake in shares of Automatic Data Processing by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. State Street Corp grew its holdings in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock valued at $5,820,445,000 after purchasing an additional 187,415 shares during the period. Geode Capital Management LLC grew its holdings in Automatic Data Processing by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock valued at $2,977,777,000 after purchasing an additional 136,876 shares during the period. Capital Research Global Investors increased its position in Automatic Data Processing by 1.5% in the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after buying an additional 116,074 shares during 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 valued at $2,004,691,000 after buying an additional 2,208,927 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing News Roundup

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

• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers added about 6,500 jobs per week (four weeks ending Jan. 24), supporting continued demand for payroll and HCM services. This macro data can be constructive for ADP’s revenue mix and recurring revenue stream. ADP National Employment Report Preliminary Estimate for January 24, 2026
• Positive Sentiment: ADP’s most recent quarterly results beat on EPS and revenue, and management provided FY2026 EPS guidance in the ~10.09–11.01 range — a sign of continued profitable growth and clear near‑term visibility. That underlying beat/guidance supports longer‑term cash generation.
• Positive Sentiment: The board has authorized a large buyback (≈$6.0B) and ADP maintains a healthy dividend (quarterly $1.70 / ~3% yield), which support shareholder returns and can provide backstop to the share price.
• Neutral Sentiment: Large institutional ownership and recent reported position changes (MarketBeat summary) show ADP remains a widely held, index/ETF‑embedded large cap — this magnifies flows but also dampens volatility from retail noise.
• Negative Sentiment: Short interest rose in late January to ~8.9M shares (about 2.2% of float) with a ~3.2 days-to-cover — increased shorting can pressure the stock if negative catalysts continue or if sentiment weakens. (Note: a February short-interest entry in the feed appears erroneous and should be treated with caution.)
• Negative Sentiment: Recent insider selling by senior VPs (small blocks: 266 and 1,000 shares reported) and headlines calling out larger insider reductions drew attention — while sizes are modest vs. total insider holdings, such disclosures can amplify near‑term investor caution. Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 266 Shares of Stock
• Negative Sentiment: Stifel trimmed its price target (from $280 to $270) and maintains a hold — analyst downgrades/target cuts can exert downward pressure on sentiment and make the stock less attractive for momentum buyers. Benzinga

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.